Israel Faces Economic Problem

Chronicle (Levin), 10 June 1949, Page 5

Israel Faces Economic Problem

Received Thursdav, 7 p.m. LONDON, June 9. The greatest danger eonfronting the • new State of Israel, aecording to the • speeial eorrespondent of the Daily i Televraph -who recentlv toured the country, is that of bankruptcy. The : eorrespondent says that the Israeli 1 authorities have been unable either to assimilate or find work for the quarter 1 of a million immigrants who have ar1 rived since last May and new arrivals , are continuing to enter the country at the rate of 20,000 monthlv. This influs, together with the effects of war'expenditure aird deniobilisation, has dyiven the Israeli Government into a serious ' . economic position. Nearly 60,000 of the ; new arrivals are still living under canvas in .conditions which are only better than those they have left because they are no longer subjpet to terrorism and police interference. The cost of living continues to rise steadily but at the same time the standards of life are low and are becoming lower. A continuing problem is the hostilitv of the neighbouring Arab States some of whom feel that although they may have been unable to defeat the Jews in battle, they have prospeets of doing so by an economic Mockade. Israel can achieve no lasting* economic stability ' unless she can arrive at working ar- ' rangements with her neighbours, eon1 cludes the eorrespondent. In Ihe long 1 run slie appears to -be plaeingj her hopes 1 in the abili|y of the internaltionajl, ahb - partjcularly the American-Jiiftyish', cbm- : munity to provide the necessary financial and economic support. At presenl I Britain is Israel 's best customer bu1 s many Jews dislike this for politica. reasons.