THE ALRIAN JE'ISH COiVITTEE

Report from Israel

November and December, l9O

e most vital problem in Israel in the last six weeks has been Korea. Its
tial as a casus belli orbis engaged and affected Israel no loss than the corld
e and the Liiddle East in particular. Even though Palestine problems ol'
nanitude were up for consideration before the U.N. General assembly at Lake
s, and though several border incidents in Israel had considerable nuisance
in local affairs, it was Korea and all its
implications which engaged the
ttention of both the public and the government.

snaaovr of war hangs closely over the Middle East. Thj is the bitter
friven home to the Jews who, whether living east or west of the Iron Curtain,
ether reaching Israel from before or behind the Curtain, are today very
rf wars. But, if the Jewish people as a whole are war—weary and war—nervous,
in Israel face the prospect of a new war now with grave anxiety. Quite
the fact that such a war would grievously split the Jews between East
it would affect Israel in two ways:

1) If Israel is within the orbit of Russian plans to occupy the Middle East
its oil fields,Suez Canal and sea outlets, Israel might be in danger of being
This danger would indeed be great since there is nothing but SOO miles
ussia and Israel. O effectively stopping a Russian advance into the
.ast
there can be little hope at the moment, since no Arab army is likely
ip any fight. Israel would probably be the only nation to offer resistance.
ns alone could not stem any air bombardment of the Suez Canal and Negev area,
massed tank advance across the Levant.

)
ut even if no occupation of Israel should occur, the war would severely
ere with Israel's economy and particularly with her plans for iimigration,
tion and productive expansion. Immigration would stop or be greatly reduced,
onaJ. frontiers would close. Absorption processes would be impaired beyond
as funds, credits and machines and materials would all be unavailable.
duction would drain off all these essentials to Israel' a historic task of
iomeless and powerless Jewish refugees. These obstacles, though not fatal
rrould set back the consolidation process of Israel for some time.

iay tne feverish fear of war reported here from the U.S., and defense
ns in 7estern Europe are having adverse effects upon the economy ol'
'he colossal increase in the costs of raw materials in US. and iuropean
several hundred per cent, has put a greater burden still on Israel's
lollars. Added to this, the general rise in the price of consumer goods
has driven up costs of food imports to Israel.

government has been giving very serious consideration to the problems

g out of this situation. ifl the military field Israel was sometime ago,
fore the Korean setbacks, faced with the direct U.S. offer to permit a U.S.
nd naval base at Haifa. Then Israel decided not to accept the offer,
rguzner4t that Israel had as yet to remain neutral in the East—7est struggle.
ity, hover, the reason was not neutrality —— there is no such thing today
a priority consideration for the special position of the Jewish people who
 —2—

.11 widely separated on either side of the 'ron Curtain. Con,munists in the
tho are anti—Israel, have recently advanced the argument against Jewish
tion to Israel that this emigration shifts
the balance of productive manpower
he East to the West, and is therefore a serious consideration in the coin—
ye war potentials of the two sides. If, therefore, Israel would now publicly
gaily ally itself with the U.S., this immigration would immediately come to
nd those in Rumania and Hunga'y who use this anti—Israel argument would
justified.
or ru.u. open identification between Israel and the U.S. in military
5u.ch as bases, it must suffice that Israel is patterning her army on U.S.
LUJ.sh lines, uses Western equipment, in so far as she gets it, sends her
s into the 7est to copy uiestern methods, and leaves no military secrets
Prom thA U.S.

i'ne u.s. military authorities, who were not concerned with the particular
idrations which affect Israel and her position vis—a—vis Eastern Jers, are
d to have decided to establish the U.S. base atSidon, a spot just north
Israel border in the Lebanon. The 'private visit' abroad of Mr. Ben Gurion,
threw up so much speculative discussion, was repeatedly said to have been
ted with this problem, and with kindred problems of Israel's position in

IsraeL army continues, of course, to grow in strength and efficiency.

Ls still first priority in everything in Israel. While there can be no
Uat the Israel army can alone never get strength enough to fight a major
power, the Israel army will certainly be able to block advances into Israel
yond her, and to be a major defense factor, as well as a mechanical and
Lcai supply base. Its value in that role may prove inestimable. It may be
ly force in this area capable of putting up any resistance worthy of that

e'ern ueiense chiefs have now apparently begun to realize that between
r,d India there are only two military forces of any real value: Israel and
:n the military vacuum which exists today in the entire Middle East these
'emain spots ol' strength. There are already several signs of closer political
nilitary bonds between these two elements in that vacuum. In November,
Dayan of the Israel army went to Turkey and was so well received that Arab
sentatives in Ankara addressed identical notes to the Turkish government
ng an explanation whether Turkey was pro—Israel and anti—Arab. There are,
ve, other and less patent events, which disclose the new identity of
between Israel and Turkey as eastern outposts of estern and European
ih1 outpost best had been somewhat impaired by the recent cooling off
iich has begun flirting with Russia, making a commercial treaty and
o—Comrnunist prisoners to escape.

1,luu wu1a1ura.Lly, the question has beer most seriously raised in Israel whether
stern powers intend to include the Iiediterranean basin in their defense plans.
known, European defense will consist of three regional arrangements: The
Union powers, the Scandinavian powers, and the south iuropean powers
!ugoslavia, Spain, and Greece). Turkey was not admitted to the North At—
nferenee on the ground that this would be spreading Western defense lines
 —3-.

nm aria wiae. This same argument would be applied to Israel too. It appears
U.S. political and defense chiefs prefer at present to leave the iviiddle East
s own defense, whatever that may amount to.

.n Israel is that the foregoing view is a mistaken one. In her drive

nquer Asia, Russia is bound to move into the Ivaddle East. Yet Suez and the
e"'nean basin must be defended, if VIestern defense is to have any meaning
Empire supplies and raw materials from India, etc., are at stake if Suez
I editerranean are left open, Also, a hole would be torn in Continental
In defending the Mediterranean, Israel, Turkey, and the Levant states
luded.
'mere can be no question that Israel, no less than the e$t, is interested
ining this defense ring. Some U.S. quarters, however, use Israel's approach
e 1Testern defense arrangement as a means of persuading Israel to make peace
her unwilling Arab neighbors by means of fundamental Israel concessions,
.g that strife is an insurmountable obstacle to a iediterranean defense
sent which would include Israel, Turkey and the Levarit states. Israel,
part, would indeed be prepared to 'ake peace with her neighbors if these
how any willingness at all to do so. But they are only willing to sulk
srae]. and to sit on the fence over VTe stern defense. They believe that the
ill have to defend their territories against Russia, wifly—nilly, much as
had to keep the Germans out of Egypt and Iraq in l92—3, without any
actual participation by themselves, other than to secure war profits.
o the Arabs, is 'neutrality'. In these cir?umstances the State Department
ht to have called Arab representatives into conference to tell them what
intn if they do not rally to coimnon defense.
ne iast three months this kind of nilitary speculation regarding Israel
rld conflict has begun to creep into discussion among certain Israel circles.
'ion has not yet percolated down to the general population; but military
and the government are doing a lot of thinking on the subject.

Tnree new factors have entered this situation recently: (1) the U.S. is
.ng to step actively into 1iddle Eastern affairs, (2) Egypt's nationalist
;tations are becoming a direct threat to western defense, (3) the Arab states
g at 'neutrality'. Since the end of iorld ar II, and as a result of
rfl policy in the Middle East had been conducted entirely by Britain,
Ln the case of Israel. The U.S. conducted its political affairs only
isly, through the British Colonial and Foreign Offices.
uj.uuiu UW indicate that the. U.S. are themselves moving into the iiiddle
Ct appears that U.S. political representation in this area is being
iened. The mooted appointment of the U.S. Ambassador in Panama to the post
viv is here hailed as such a step. Only in the case of Egypt does Britain
continue to keep political control, for two reasons: British troops alone
isoned in the Suez Canal zone, arid Egypt covets the African Sudan over
tin hs actual rule,
r tilese problems are the subject of the Anglo—Egyptian treaty of 1936.
w feverishly agitating to revise or replace it. The position roughly
inder the treaty Britain is allowed to maintain her troops on Egyptian
rve the defense of the Suez Canal. Egypt's politicians have for years
 —Li—

been agitating against these 'foreign troops' • rhen the present Wafd Party came
to power in Egypt in l9L9, there was reason to believe that social reforms would
take the sting out of the Suez problem. For, no one, Briton or Egyptian, would
demand that Egypt herself defend the Canal if attacked. Two years of rule however
have shovri that even the "iafdists are anti—social and corrupt, and do not put
through any social reforms. On the contrary, senile Vlafdist Premier Nahas Pasha
gave way to the degenerate but aggressive King Farouk on most issues. The King
today controls, through his entourage, most of the country's affairs.
In order to placate and divert the attention of a starving arid ragged
population, the government fare chauvinist sentiments • In l9I8 it was Jew—baiting.
After the proclamation of Israel, it took the shape of the war, and later of the
economic boycott, which for Egypt resulted in the introduction of a blacklist of
ships which passed the Canal bound for Israel. Their passages were refused. Since
this blacklist harmed, not Israel, but the main seafaring nations whose vessels
were searched arid interfered with, Britain, France and the U.S. protested, and the
system has now been made less rigid. In addition to all this,
the British troops
were seized upon, and their presence has been the subject of "student demonstrations,"
etc. Demands for a complete British withdrawal have been voiced, and 1Vr, Bevin,
the Arab romantic, opened negotiations in London.

Nobody doubts that the effective defense of the Suez Canal is vital to the
iest, It is essential to Israel, not as the Canal, but as a main objective in
the defense of the area as a whole • One British politician has made the suggestion
Britain be enabled to leave Egypt without abandoning the area: Britain
that
should get bases in the Israel Negev. This idea was coolly received in Israel,
mainly because feeling is still too fresh in the matter of British rule in Pales-
tine, and, anynew territorial arrangement of this sort in peace time would have
unpopular taste even with the most anti—Russian. Continuous surprise is being
caused here by the fact that although Egypt thus keeps needling Britain in times
of major defense preoccupation, Britain keeps on sending jet planes and latest
Centurion tanks to Egypt.

What is true of gypt, leader of the Arab world, applies with variation to
all other Arab states. They are all doubtful allies of the West, although their
fear of communism ought to be aa great as the 'Jest' a • Even if supplied with
proper arms, they could not look after themselves, because their soldiers have
no fighting morale. A case in point, even before hostilities break out, is that
of Iran. In the last 2 months, Iran has made remarkable political overtures to
Russia. A commercial treaty was concluded, and pro—communist prisoners were
allowed to escape.

At Lake Success, too, the States stood out in not voting with the U.S. on
East-West issues, putting up a show ofneutrality. Azzam Pasha, Arab League boss,
justified this by saying in Washington that it iS the u.s. who must coax the
Arab states, or else there is every danger of communism.
On the other hand, Israel, if further proof were needed, is every day coming
out more openly as a sympathizer, if' not ally, of the U.S. This is now patent to
all eyes. And it is all the more remarkable, since about J.S% of Israel public
opinion, as recorded, voted for a line which advocates alliance with Russia.
 —5..

There sImilar opinion in ant Of thO k'&3 tate,

is no terthes
play it safe. It is also remarkable in its result, because it makes Israel
the only reliable pro—U.S. power east of Greece and south of Turkey, and
together with these, a link in Middle East defense.

There is of course some opposition In Israel to an alliance with the West,

from the same 15%. This element, consisting of 3% Communists and 12% Mapam
of various shades, has been strengthened in recent months by the decision of
the Hashomer Hatsair Kibbuts movement to seek affiliation to the Cominform.
This strange decision is opposed by the other components of the Mapam movement.
Indeed, a delegation of Mapam members which recently went to Eastern Europe
in order to clear their relations with the Cominform, were rebuffed for being
'deviationist' and not communists. In all these circumstances the peculiar
decision of the Hashomer Hatsair needs explanation. It is the result of a
long process of quaint philosophizing and a11night debating carried on in the
conmunal dining halls and the fields of the Kibbutsim of that movement.
Hashomer Hatsair kibbutsim are small and limited in size, and iconoclastic.
They have developed a splendid isolation from the outside world, even the imme-
diate world, and within the walls of their community often cone to conclusions
and decisions far removed from the real world, ad built on ideals and ideas
only,Just like the Jewish scholars of the Talmud and Kbal did. Every
other citizen of Israel, who does not share this life of isolation, and of
whatever politics he may be, knows that Israel, to paraphrase Marx, "has
nothing to lose but herself and her all to Russia." The majority favors the
West because it fears the East.

There is, however, one aspect of Western defense which makes Israel
participation difficult: West German rearmament. This rearmament has caused
universal resentment in Israel, and this resentment is in no wise softened
by the known fact that Eastern Germany, too, is being armed. This only worsens
the situation. As a matter of fact, Communist agitators are quite successfully
busy telling the population, most of whom are victims of Nazi persecution,
how terrible the rearmament of Western Germany is in view of prevailing Nazi
activities. The matter was also raised in the Kiesaet, and government spokes-
men were hard put to it to explain that Israel objects to German armament on
either side. Obviously, this does not dispose of the thorny question, how
Western Germany and Israel can be partners in the same defense alliance.

That Israel continues to sulk over Germany to the extent of refusing to

acknowledge her legal existence is only a:;eymptorn of the feeling still preva—
lent here. However, this artificial ignoring of an existing state creates
many difficulties for Israel, especially Th restitution matters. It is
questioned .how long Israel can persist in his attitude of the sulky ostrich.
i the other hand, the excesses of all—round objections to matters German were
broughthome in a peculiar ruling of the Israel theatrical censorship board,
that the orican singer Kenneth Spencer, who recently visited Israel, must
not sing in the German tongue the songs of the Jewish poet Home. This in-
junction caused widespread disapproval. Against it, however, popular feeling
against former Nazi collaborators was again expressed when the concerts of the
French singer Tino Rosi were disturbed with tear gas. The Betar, Revisionist
youth movement and heir of the Irgun, prided theaselves in this achievement,
apparently an outlet for their repressed terrorist attitudes.
 .6—

uring the period under review, Israel's status at the United Nations
wa especially ezposed. In the last General Assembly, this fell into 2 parts:
Israel in general world matters, and Israel in the Palestine issue.

the general field, Israel, through her foreign minister, took a very
a.ve part in trying to settle the threat to world peace Mr Sharett took
a major part in the resolution to prevent war3 In the 13 Asiatic power coni—
to end the war in Korea he also had a leading hand. This, and other
s Ler Israel interventions seemed to show for the first time that Israel is
ready as a member state to apply its political resources to aims beyond her
own and sole good Indeed, I& Sharett's ctivity in general world problems
appeared in Israel so great, through the magnifying reflection of the newspaper
reports, that a discission begar as to whether it was right for Israel to come
forward with treatment for the ailments of others while her own problems,
Jerusalem, Arabs, and peace, were not yet settled. This discussIon was carrted
on in press and public for some days and might have gained dimensions had it
not been drowned in more pressing news,

£he Palestine problem, in its tri—partite aspect, JerusaJ.em, peace and

rGees, went almost completely in default. Of the 3 problems it can be said
that the tide of preoccupation ran counter to serious discussion or decision.
}hre in Israel one has the Impression that U.N. members are really of tired
p estine. The Arab refugee problem was probably the most urgent, because it
I olved so much human suffering and needed a hurane settlement. Israelis
r d an eyebrow when they learned of the Arab threat to start a refugee
c upon Israel. Would this mean new war? But not more than an eyebrow
i

wa raised when it became clear that this was an empty threat by some Iifti
agitators, and that the West will not allow any conflict to flare up here now.
T iuinanitarian aspect cf the matter was removed from the Israeli view when
I as known that many Arabs had been refusing U.N. relief and work In order
t reinforce their claim to return to Israel, and when Israel made her offer
f comnerisation of all property abandoned by these Arabs.
n the peace problem, no progress whatever was recorded since the Arabs
r to parley. As no one can force the Arabs to love Israel, we are now
g resigned to the fact that peace is far off, so long as the Arabs can
zithout Israel. This means Israeli planning, economically and politically,
1
w

1
t
Arab participation. In foreign policy it also menns aiming to neutra—
the same Arabs who are trying to isolate Israel, and perhaps even isolat-
ing them through suitable alliances with others.
.uring November and December 25,000 people immigrated. Rumanian omigra—
t slowing under further pressure there. igration from Poland is
Ls
c a stop on January 1, 1951. Immigration from the Yemen was also brought
bo
t uoncluslon with the last arrivals from Aden, and In a ceremony exactly 40
y after the first Zionist mission to the Yemen, Ir. Ben Gurion finally
o d the curtain on this most thrilling of all parts of the historic in—
g ring of exiles.

L main stream of immigration now comes from Iraq, Iran and North Africa.
A ady flow of airborne Iraqis leaves that country in spite of the harassing
Donditions of emigration, From Iran, the poorest of the poor, and the simplest
 —7

simple come to Israel, right out of the mountains of Kurdistan.

But they
accepted, even if the task of settling them is ever so hard. Hope lies
their offspring, who in fifteen years from now will be a new vital force in
L

Epresive of the tremendous difficulties inherent in the immigration stream

amps and maabaroth (transitory settlements). The result of a determined
ing of idle I nCant camps has been that of 136,000 immigrants rraiting for
,nent, housing facilities, about 100,000 are now living in 110 maabaroth in
arts of the country. Of the remaining 36,000, about 22,000 are social cases,
cannot immediately — or at aU — be put to productive work pending housing.
figure is of course very high, and shows hovr over—generous and under—selective
r L in her immigration policy.
T that over lO of all the population are living in temporary facili—
tents, and huts, speaks volumes. Great housing schemes are on foot, or
on naper, and 80% of the planned housing has been carried out on schedule.

L: hard and peculiar. Even if the housing question

in the maabaroth is
fi other problems, beginnIng with social and living
aside, there are many
e, food, shopping, supplies, and ending with local administration, education,
t inment, etc. As immigrant camps were simply turned into maabaroth, for
ox funds and need to stop charity, all these aspects were at first ignored.
hey are being attended to one by one, and with great priority from the
ii .- Supplies, which had been very bad in many maabaroth, are now given
i.

hardwinter months, the government had prepared a scheme to put

n aged 2—10 into private homes, or institutions,
low, but execution was even slower, The
Response from the public
insurmountable obstacle was found
the rationing in the towns, and the strange situation of the children.
r ouid not take in an extra child, and feed and keep him, on the current
r Lens for children. Maabaroth children were sent to homes extremely
.y cloth, and the foster parents had no means of clothing them any better
xtra rations. Also, most children were from backgrounds (oriental) so
Lgi bo the foster home in tongue and habit, that the scheme proved quite
a: able. Oriental families, on the other hand, had not taken in many children.
Lntely, however, the nter has so far been very mild, and children were in
e jal danger in the camps.

So army stepped in, Since November, 37 maabaroth have been taken into
are of army units. Soldiers and annual reservists have turned housewives,
maids and shopping guides. They are showing the new immigrants how to make
est of the difficult situation. On the medical side, an order has been made
ting all doctors up to age S5 into maabaroth and camps for one month. The
may have to be done with teachers, if these cannot arrange a sufficient supply
iaabaroth schools voluntarily.

The recent municipal elections still agitate the country, six weeks later.
is due to the long delays caused in giving any expression at all to the
wish
electorate, Ever since provisional results became known, an unprecedented
horse—trading about mayors has set in among the parties. The reason lies
fact that L2 city andvillage councils were elected simultaneously, This
 —8—

ract Injected party politics intothe whole affair, and removed all local color.
A vothig was by party lists, there are many parties in the field for few seats,
and nowhere at all was there an absolute majority by any one party. Combinations
and coalitions had to be arranged, to gain the siwple majority in the council which
assures the mayor. Personal questions of who was to be mayoral candidate from
which party further complicated the matter. In Haifa, Mapai and apa could agree
on local adiuthistration,
but Mapam could swallow iapai' a Aba Huhi. In Petah
Tikvah the Agudah sole counciUor held the balance between eight left and eight
right members. He was traded against orthodox aliiances in Jerusalem, where left
andright combinations also had equal strengbh. As a result,, 'irst the official
publication of the votes was delayed, and then the statutory council meetings to
elect the mayor; the Jerusalem mayor is not yet elected, after seven weecs.
Needless to say, this bargaining across the country did not help to give expression
to the wish of the electorate in this or that city. One thing has, however, become
clear. There must, in the future, be individual City eections, and, if possible,
the party system must be replaced by the simple majority system.

Regardthg Jerusalem, the U.S. debate on internationalization attracted some

attention, but'oused no feeling There was some surprise here that over half the
UN members again voted for the impossible internationalization. This was again
to Israel representation at Lake ucess, but showed the obstinacy of
a mild slow
the Vatican and its power behind the thrones. The failure to get a two—third vote,
atechnical matter, resulted in a new deadlock over Jerusalem, arid the whole matter
as put off for another year. i.ieantime Jerusalem is as Israeli as Tel Aviv.
In the collective settlements we find in the last few months a most remarkable
change. The crisis, which has been passing over the iibbutsim t1-se last two years,
is shoiing its, signs in almost every aspect of collective life, It is now going
to the very unity of many 1ibbutsim. The largest of the three main Kibbuts
aovements, Jbbuts ieuhad, of 3,OOO, which unites the big settlements of 2C0—1200
embers, is deeply split over I\Lapai—iapai1 politics. With the sharpening of the
coldwar, the rift among members in at least four settlements has reached a point
tere members have decided to part company. One part stays behind, the other
leaves the settlements, and goes elsewhere, The meaning of the politicization
of the pioneer movement can perhaps be gauged from the fact that farmers are
prepared, for the sake of a political conviction, to leave the soil they have been
tilling for 2 years. If this goes on, a large part of Israel's agriculture is
also in .anger, as there is a great shift in ag'icultureJ. manpower.

Another aspect of the Kibbuts crisis is the need to hire labor. This runs
cmter to Kibbuts principles, but was necessitated by the absorption of i.!1i.migrants
and the hunger for working hands. It is now eating at the foundations of Kibbuts
life.

attitude to Israeli problems in the world has also found dramatic

Mapam's
ssion in the demonstrative resignation of the Israel minister to Tarsaw and
his staff, who are lianam members. hey are returning to Israel, and it has not
yet been decided whether to send another man to Warsaw. On one has yet been sent
to iioscoV, after the Israel candidate, former Education 1iiriister 3hazar, was
rejected by the Kremlin, as of former Russian nationality. Generally, feeling here
Is to extract as many Jews from behtnd the Iron Curtain as possible, and then to
1.t diplomatic connections with them go b: the board. As all foreign policy goes
tough MQscow, it is enough to have a Soviet minister in Tel Aviv, who is the only
usable channel for political work with the East.
 —9-.

Israel defense remains now, as ever, the main care of the government. With
world rearmament added to the local Arab hostility, Israel has a double defense
prob'em. The need for greater unification in defense was demonstrated, first by
the establishment of a civil defense organization under the coiwnand of an army
officer, and second, by changes in the top cornniands of the fighting services.
The last maneuvers demonstrated, what had long been known, that the Israel army
is one unit, in which the fleet and the air force must be integral parts. There
had, however, been a tendency by some cormiandors toward setting up separate navy
and air force services, independent of the army and on a par with Lt. Chief of
Staff Thdiri has now cuccoeded. in countering these teidencies, Air Force chief
Aaron Remez, son of the minister, was re-olaced by navy chief Shamir. In charge
of the navy was put its 26—year old. chief of operations. Thj s probably a record
n two ways. First that the first admiral of a navy is under 30, and second that
a navy chief can become air force chief. The latter change was made with regard
to the administrative abilities of the person moved, arid not with regard to his
expertness as sailor or airman. The changes have, however, demonstrated that the
Israel army is one whole. This must indeed be so in a small country, with defense
problems stretching over comparatively limited areas.
The Israel army again proved its worth in some recent border incidents. A new
metalled road had been laid to Eilath, Israel port and
outpost at the end of the
Negev, on the Red Sea, Jordan forces one day blocked four kilometers of this road.
The UN. observer in charge was unable to do anything either way in the matter,
So Israel convoys decided to move along the road. A brief exchange of fire
occurred, in which a Jordan tank was imocked out. The road is now open, and the
question whether it lies in Israel o' Jordan te'ritory has been buried in the
armistice corunissioxi. The incident has, however, had one other good effect: it
has made the Jordan army stop infiltrators and marauders from crossing the border
IntoIsrael, a sport which had been encouraged. by Jordan forces for two years,
to the great danger of Israel lives and property.
The Eilath road incident was one in a series of new Arab moves to try to
strangle the growth of that outpost—port on the Red Sea. The spot has indeed been
growing rapidly. Ships have been arriving occasionally from Aden, fishing has
been begun on commercial lines, the population has grown, and even dry farming
has been experimentally started. The Arabs see a danger in all this. Egypt has
now set up a sea blockade at the mouth of the sea arm leading to ilath, and Jordan
tried to block the road from the north. However, Israel is determined to keep
the port open, as a future eventuality; in case of blockade during a war, Eilath
may prove a valuable and vital sea route with India and the Far East, i4 lines
with the Jest are cut at Suez or elsewhere.

The Dead Sea, similar to Eilath in many respects,

will soon be put to corn—
iercia]. exploitation again for its minerals. After many delays caused by the
British Potash Company, which holds the license, and after great patience shown
by the Israel government, matters are now beginning to move. The obstacle was the
fact that the Company is controlled by the world potash syndicate, which tries
to keep prices up and production limited.

In the economic field, the notorious dollar shortage continued to be very

harmful. The importation of raw materials has been most drastically cut, and with
it production in many plants. 'The shortage has been felt particularly also in
the building line, which today is the yardstick of absorbing immigrants into Israel.
 — 1o—

building
ha almost come to a standstill, by reason of a government line
public building of immigrant houses priority. Private building projects
get licenses to buy building materials only if they undertake to glue
ernment, for half the value of the materIal in questIon, dollars. To
these dollars, they must either ge sift dollars from abroad, or else coins
in other ways, of which the governient does not enquire. Thl.s Is a srrnp—
the seriousness of the dollar position. As, however, it is more important
le reople in houses, the government now closes its eyes to peculiar trans—
, so long as the main duty, immigration, can be fulfilled.

portation of goods continues in the minds of mny to be the main solution

el adverse trade balance. The argument is this: Israelis wish to main—
high standard of living. T!nts is indeed the e:ross promise of the labor
ent to itr elecorate. In order o do this, there will ciweys have to be
tion o± raw materials and of many finished goods which cannot be produced
fl(i the e:ainplo of Switzriand, a eounlry rIth no raw materials, hut a high
)f living and of foreign trade, is always prosont.
seems to many that this plan is unrealizable, because it is so very
It to maintain ecports from Israel, except in limited quantities and lines.
h great export trades, as oranges, are falling each year into worse
anc this year led to planters' strike against pioking and packing. The
nt are now beginning to embark upon a policy of :Irst using the available
for growing food for honconsuzntion, second for building and roadmaking
idiary defense work, third for industry for home conruiaticn, and lastly
oign trade. Even the new Export Center, which was set up in October to
exports, is not doing the work expected
of it. It seems that only an
This of course means bringing down
can save Israel from starvation.
i trd of living considerably, and draining off surplus cash in the hands
drners. There are many experts now who criticize the government for not
r g upon a determined policy of diverting surplus cash into attractive — or
cv—savings.

E poiioy
is now being changed. In order to drive up output, which is low,
enment decided
to create attractions for higher wages. There has been
easing in the food position, The new agricultural minister, Lubianiker,
rduced a more regular supply sytom, and slightly more liberal rations.
c some way toward pleasing disgruntled, workers, and to raise the will
3nd earn. In other respects, however, the policy to raise output has
dad failure. No joint production boards have been set up. No output
s have been set. No nroduction norms have been introduced, — because of
o ition of labor to what they call either 'sweating' or Stachanovism,

s to outlook.
he contrary, the slight rise in prices of consumer goods, which occurred
i months as the result of rise in world prices, has now moved the Hista—
demand an all—round increase in wages.
The occasion for this move is the
r, at which time labor contracts are up for renewal or revision in most
or industries. Last year the government prevailed upon labor not to seek
ion. This fact of forbearance has given labor' additional stimulus to
the revision this year. is practically the entire labor force in industry
iculture is invo'ved in the revision, upward moves in wages will affect
 —U —

armire price level of the country. Occasionally, the government try to ster.i
flood by telling certain producers that their maximum prices are being fixed
o t regard to any wage rises later. That this is no way out. Trade miiter
on—politioal addition to the recent cabinet) recognized this, and in the
a 3aid openly that he opposes any wage rises. Next day both the Mapal and
G on declared in the sane forum that this was not government opinion but
private one. There are now strong rumors that Geri is going to leave the
over this issue. ItS he has no party behind him, he has no special motive
a rn in power if policy goes against his views. It is also being declared
r. Geri is most dissatisfied with Kaplan, who, it is pharged, has broken
f the promises made to him at the time of his otry into the cabinet, by
g.ving him the freedom of act!on in trade matters to which, it
was agreed,
, entitled,
o the dollar shortage, comes the sterling shortage. David Horowitz,
xi athiser, was sent to London to negotiate for the release of the remaining
xi ion Israel credits frozen there. In 1946, Palestine Jewish credits in
y were Q. Hororitz has met with jreat
obstacles, as London is unwilling
hase these funds. The argument is that other war creditors of Britain,
etc.,have still very large credits in London, which cannot be re—
If Israel were to receive all her funds, this would put iritain in a
t os1tion vis—a—vjs the others. Britain is having a particular eye on
, dth whom she is now negotiating over Suez. I'ctybe, ifthe credits are
eleased, this may be for Israel's eventual good, as this my preserve a good
t abroad for a later need.
iture In Israel has been making great strides. For the winter, the
son, vast plans were laid to plough and sow new lands, hitherto left
This would have increased crops by a high percentage, and would have
in in'.ports next year. However, the weather has been most unhelpful.
'as this last weeks been cursed by the finest weather possible, con—
3unshine. Rain is urgently needed, and i is today too late already to
.e crops which were sown, and took root 7 weeks ago. This will be a great
n next sunL'ner, and now already causss great headaches here. Cie bad
b of artificial rain, but there are not even clouds.

i other
ness.
hand, the U.S. have again stood out for thoir understanding
First, the U.S. port—Import Ba:ik has just Franted Israel an
nal loan of ;3O million for agriculture, and second, the U.S. Department
ulture has just agreed to send to Israel some of its vast wheat surplus,
al cost to be defrayed on lang terms. Eoth these steps will be most
in maintaining the larder of this country, in peace and war.

nesset, Israel's parliament, has lately shown signs that it will revise
dure and work in some respects. inesset meets 2 days per week in Jeru—
tt has been 'ou.ndthat many members register themselves for debates,
n are not in their places when called. Even ministers are not
there to
if such debates end abruptly. A1o, the debating standd of the average
is sinking. Lost members tend to repeat long held and long known party
and when in a given debate the first speaker of a party has had his say,
foregone conclusion what the rest of his fellows will say. Again, the
habit of askIng questions of ministers, to raise minor matters in public
 — 12 -

eeu xound to limp. Ministers only reply a long time after the question ha
put, and supplementary questions from the floor are very limited. This
the value out of questioning.

of the woric is
of course done in committees. There, the lack of ex—
of members is most felt. Most Kriesset members are !professional
.ans' toz'm which denotes no particular profession. Only 1). are lawyers,
I hem lawyers of practise or standing. 1ny are iibbutz members or party
lanes. They all have ample general knowledge, and are intelligent, but
are no exports among them, and that .s a great failing.
1i raeli jtdioiar recently received high trihute in public. TIie govern—
had engaged the judiciary in an unseemly fight over salaries, and the lack
tesmanship of some ministers was exhibited by their attitude toward this
The Knesset, relying to some oztena on the public's z'egard for the courts,
ver, unaninous in having this rnatter settled properly, Ci this occasion
nd press caine forward in tribute to the integrity, solidity and effic—
the judiciary, which is pa'ticularly inportant, and noticed, enong the
difficulties of this young statets adminttration.

craization of the population is proceeding slowly. Immigrant children,

luickly learn Hebrew and Israeli habits. Those above that zge are a
prob.Lem. The army i an eduQative factor, but for limited number on:],y.
3t majority of immigrants remain cultural aliens to Israel. The farth the
tion wave moves east, the harder wIll this process be, as the distances
nd llace are greater. Symptomatic is the fact that with a dou],ing of
ation in 3 years, Hebrew newspapers have only an added circulation of
cation minister Remez. is now driving to educate adult immigrants in

literary field, the iehrew prose writer S.J. Agnon was recently
ted as the outstanding prose writer today. He was awarded, for the second
l Avivs Bialik pmize for literature. Agnon i a writer steeped in
traditional literature, Bible, Talmud, Kabbalah. His themes have a great
f1the mystical, and are far removed from realities and present problems.
tings are confined to the few, but his standard is high.