884A.00 TA/7–2752: Telegram

No. 462
The Ambassador in Israel (Davis) to the Department of State

secret
priority

147. For Byroade. In response points Embtel 142,1 PriMin stated he is convinced necessity avoid increase short-term borrowing and balance budget. He recognizes this means sharp curtailment imports; says they will be limited “if possible” to essential food and other items (such as POL and certain raw materials) needed to increase production. He agreed means avoid periodic crises shld be sought, saying IG progress toward econ independence wld necessarily be slow but he determined work toward that goal. As to immigration question, he indicated that while doors wld remain open to Jewish people in trouble, present low rate immigration affords opportunity to consolidate econ position.

PriMin expressed gratification over presence Mikesell in Israel, saying that quite aside from usefulness his report he had been instrumental in expediting assembly of data urgently needed by IG. He was extremely interested in how soon interim report cld be completed, and was assured Dr. Mikesell wld complete very soon after all essential data had become available.

[Page 971]

Others present at interview were Kollek, Avriel and Gass. Emb comment follows.

Davis