Democratic Palestine : 17 (ص 21)
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- Democratic Palestine : 17 (ص 21)
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"a Doing business:
“Israel and U.S.
U.S. exports to Israei* on
$3.0
in billions of dollars in billions. of dollars
25r7 $2.5
2.0}—- i =
1,5 wal
16+ =
St =
- 4981 ‘82 ‘83 ‘84 ‘B5™ 1981 82 ‘83 ‘84 ‘85
"includes. military
“Chicago Tribune estimates
Chicago Tribune Graphic by Kevin Boyd; Source: U.S. Deparment of Commerce
off state-owned industries; (g) elimination of the Ministry of
Trade and Economics; (h) ending the endless funneling of
public funds into insolvent enterprises; and (i) reducing the size
of the public service labor force.
This was, of course, accompanied by profusive assurances
that the US «did not want to intervene in the internal affairs of
Israel.»
BUSINESS IS BUSINESS
Although the Zionist entity has never really enjoyed eco-
nomic clear sailing in its 37 year history, the economic deterio-
ration of the past three years is viewed not only as a threat to
social stability, but also as a strategic danger. Crumbling eco-
nomics would limit the size of the military establishment which
constitutes the main fabric of the Zionist entity, from which
imperialism projects its dominance in the region. Thus, it is not
surprising that no opposition was raised to injecting further
military aid, but there was much controversy involved in the US
and Zionist efforts to push for an austerity program designed to
restructure and integrate the Israeli economic system further
into the international imperialist market.
Probably at no other time in history have such intense eco-
nomic efforts been exerted to bail out the US’s strategic asset.
Delegations flitted back and forth. In one month alone, a record
number of 37 US members of Congress visited the Zionist state
to get first-hand information about the economy. There were
closed door meetings, economic austerity package deals, and
studies submitted by the International Monetary Fund (IMF),
the US Agency for International Development (AID) and US
economic experts, well-known for their pro-Zionist stances.
They all came up with the same solution: «The hope of Israel
then is to be among the high-tech nations. Israel must drastically
increase its exports or go under economically. It is a national
emergency.» In other words, the US deems it of vital national
interest at this stage that ‘Israel’ rehabilitate its economy by
becoming more integrated in the world imperialist market, but
escorted under US auspices, not going independently. This is
reflected in the stress on «the era of high technical revolution»,
private sector investments, switching relations from ones of
financial aid to ones of business», etc. This is emphasized not
only in US imperialist circles, but in Zionist quarters as well,
despite opposition from within the Israeli state sector. Peres
calls this stage «the third stage of Zionism», meaning a society
based on the conquest of science and all-out development of
higher technology. (He considers the first stage to have been the
conquest of labor, the second, the conquest of land.)
Ten years ago, high-tech products accounted for 1% of all
Israeli exports. Today that figure is 34%. In the light of the new
economic high-tech base being created via the Free Trade
Agreement (FTA) between ‘Israel’ and the US, and the stress on
high-tech exports, this figure is expected to exceed 60% by 1992.
In order that Israeli companies stand on their own feet, foreign
investment and marketing help are essential. Within the past
two years, 150 US firms have invested in ‘Israel’ and the number
is growing.
The switch to high-tech also necessitates relinguishing state-
controlled corporations, selling them off to private investors to
convert them to new export-oriented, high-tech industries.
More than a hundred of these corporations, owned either by the
state, the Histadrut or the Jewish Agency, are up for sale.
Israeli enterprises which are considered sellable include insu-
rance, real-estate companies, chemical and metal works plants.
In conjunction with the Zionist economic crisis, there is the
US’s dilemma of. its own $200 billion deficit. In addition, it is
becoming increasingly difficult to assauge US domestic discon-
tent triggered by budget cuts in vital social service areas (Medi-
care, Amtrack, social security, etc.), while doling out grants in
the billion dollar range to sustain ‘Israel’ as an artificial state-
base. One administration official said: «To lavish funds like this
is counterproductive. It helps maintain Israel as a US junkie.
What about the domestic debt? What about the farmers who are
going bankrupt?» Even in 1985, when the aid package was 86%
less than it is for 1986, according to the Office of Management
and Budget, the $2.6 billion allotted to ‘Israel’ was equal to:
- six times the amount Reagan proposed to spend on US energy
conservation.
- twice the amount slated for consumer and occupational health
and safety programs.
- the combined worldwide spending of the State Department,
Peace Corps and US contributions to the UN and its agencies.
«OPERATION INDEPENDENCE»
In the light of the seriousness of the situation, and the studies
and proposals made, one fact was impressed on both partners:
Something must be done and fast. According to Herbert Stein,
an economics professor at Massachusetts Institute of Techno-
logy and staunch Zionist supporter, «Steps for assuring exe-
cution of the program should be taken and milestones designed
for measuring performance.» Thus began a many-pronged
campaign to attack the economic problems of the Zionist entity.
This campaign was basically initiated, designed and monitored
by the US, despite public assurances that the US role was to
help, not intervene.
One manifestation of the US suggestions were the plans for
Package Deals I and II, also known as the Economic Stabiliza-
tion Programs. These were conceived in US chambers in the
strictest secrecy and made known only to a select few, including
Peres, two or three of his senior aides, Finance Minister Modai
and two Treasury officials. When details of these deals began to
spread, the general attitude in official Zionist circles was obsti-
nance. The programs would result in widespread business clo-
sures and mass unemployment, estimated as high as half a mil-
lion, particularly in the public sector.
Although considered severe, the measures were to be carried
out cushioned by a massive $1.5 billion grant. Despite indigna-
tion about «knuckling under to US dictates,» the Israeli
government got a free hand in implementing these package deals
from two of the most important economic determinants in the
Zionist entity: the Histadrut and the Coordinating Committee
of the Economic Organizations, the most influential member of
which is the Manufacturers’ Association. More significant still
was the complete halt of Zionist lobbying on Capitol Hill for
three months. These factors gave the Zionist government a
breathing space to tackle vital economic matters.
Another important initiative introduced to pull ‘Israel’ out of
its economic quagmire is Operation Independence (OI). OI is an
important adjunct of the emergency policy now taking effect in
the Zionist entity. Also known as Task Force, it is a private
organization of Zionist and international business leaders
formed to promote new investment in ‘Israel’ and channel other
economic measures towards high technology. Task Force is
divided into eight working groups, each dealing with a specific
field of business activity: export of consumer goods to the US,
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