The focus of Mr. Shamir's remarks was on the possibility of massive Jewish immigration from the Soviet Union. Since the beginning of 1989, two Judaic studies centers were opened in Moscow, scores of Israeli teachers were sent to the USSR to teach Hebrew and Judaism. Since March reports began to circulate that Israel could expect hundreds of thousands of immigrants from the USSR. These reports were discussed by the Government-Jewish Agency Coordinating Committee. Israel was not yet in the position to absorb that many immigrants, but was determined to do so if they come. The prime minister appealed to the manufacturers to create jobs for the expected immigrants. Text:
Ladies and Gentlemen,
On behalf of the government and myself, I wish to greet the general meeting of the Industrialists' Association in Israel, and to wish you success in your discussions, and in your actions following the discussions.
I believe the State of Israel is presently at a cross-roads in several important areas, and as usual, the areas are closely intertwined. In the political sphere, the Israel government has presented for the first time a peace initiative which aspires to deal with and solve all the aspects of the Israeli-Arab conflict. In the area of 'the Zionist issue,' we are preparing for the arrival of a large wave of immigration from the Soviet Union and from several other countries. In the realm of economics, the field closest to you, Israeli industry is faced with changes and difficult challenges.
Since the establishment of the State of Israel, the government has not once presented a detailed political plan, as the present National Unity Government has done. It is true that the bulk of the public's attention has been turned to our .proposal to hold elections among the Arab residents in the area of Judea, Samaria and Gaza. But we emphasize to the governments that are taking an interest in our region that there is a chance of advancing a peace process only if we deal with all aspects of the conflict. It is inconceivable, for example, that we should settle the conflict with the Arab residents of Judea, Samaria and Gaza, without a fundamental change taking place in the state of our relationships with the Arab countries. There is no justification for the fact that to date, there has been enmity between Israel and all the Arab countries except Egypt. There are no logical reasons for this. We propose, therefore, that in connection with the initiative, contacts should be held at the same time between us and the Arab states, so that the hostile relations may be transformed into peaceful or non-belligerent relations, including the cancellation of the Arab boycott. Without a change in the state of these relations, the solution of the conflict between ourselves and the Palestinian Arabs will not bring about a full settlement of the conflict. The contacts and efforts must be conducted in these two directions.
No less important is the human dimension of a solution to the grave problem of the Arab refugees living in the refugee camps in the Gaza Strip and in Judea and Samaria. The time has come to put an end to the cynical and inhuman exploitation of these refugees by the Arab states, and to facilitate their rehabilitation and settlement in permanent residences. We claim that the handling of this painful problem, the responsibility for whose creation lies on the shoulders of the countries that invaded Israel in 1948, should no longer be delayed.
Regarding the course of negotiations with the Arab residents of Judea, Samaria and Gaza, it had better be understood by everyone involved that any attempt to deviate from the course agreed upon will be eliminated from the start.
We say to the Arabs in Eretz-lsrael that the initiative provides them with an opportunity to liberate themselves from the cycle of violence and suffering through fair and sincere negotiations. If anyone believes that it is possible to make quick gains by continuing the violence, he is apt to be severely disappointed. We have the determination, endurance and strength to break the violence and to overcome it. At the same time, talk of erosion in our fighters' motivation or morality must be totally rejected. These are empty words that have no basis in reality.
Ladies and gentlemen,
The tidings reaching us from the Soviet Union are a historical phenomenon. Soviet Jews, and those who have survived in several Eastern European countries, are awakening and searching for their roots, and we must hurry to build them strong bridges to their culture, to their Jewish awareness and to their homeland in Eretz Israel. Thousands are registering to immigrate, and we must draw them to immigration to Eretz Israel. At the same time, we must prepare the tools and the means for their successful absorption, on the one hand, and assist in the establishment of the frameworks that will enable many of our brethren to achieve a renewed identification with their national and spiritual roots, on the other.
The Israeli economy, and the industry that is at its center, is going through a painful process of cutbacks and dismissals, with the difficult and painful result of unemployment.
The industrialists are the first to know that this is mainly a matter of a selective process. We do not uproot the entire plant; we prune the branches, and sometimes we thin out the trees in order to make the plant healthy and to make possible new planting in place of the old trees, and in addition to them.
The main problem and challenge lie in the renewal of growth, and the industrialists, the private entrepreneurs, are on the front line of action. They are expected to succeed in creating new, economically viable places of employment that make interesting work and high wages possible. New places of employment are needed both for those compelled to leave their previous places of employment and to those just entering the work force: discharged soldiers, graduates of institutions of higher education and the new immigrants whose arrival we so eagerly await.
In discussions held in the Cabinet regarding the absorption of immigrants, there was agreement that the issue of housing could be solved by spending money. As for employment, it is clear that the problem is not money, but rather the ability to locate, initiate and establish factories that will stand on their own feet and provide real employment. Even those who used to think that the state apparatus could lead to economic growth now admit that there. is no substitute for private enterprise; from China to Hungary through Russia and Poland, everyone is hoping for private entrepreneurs who will identify, locate and erect factories that will stand on their own feet, factories that have something to sell in the markets of the world. Too many government investments, and investments initiated and subsidized by the government were later found - here and throughout the world - to be "white elephants" that swallowed money and created mountains of debt, but produced nothing, and did not provide real employment that enables their workers to make a living.
The industrialists have demands and expectations from the government regarding the conditions necessary for growth. There is not agreement on everything, nor will there be, but I can assure you that the ministers dealing with the matter, and the entire government, are aware of the problem, and are devoting a great deal of time and effort in order to make progress on this issue.
In all political and economic circles there is now more understanding of the role the government must play in broadening possibilities for the creation of sources of employment for those who have been here a long time, and the newcomers as well. It is now clear to everyone that there is no place for competition between the private and public sectors. On the contrary, there must be cooperation in order to achieve the common goal. The state should mainly create the conditions and the infrastructure.
It is my wish for you that at your general assembly next year we will all have the privilege of seeing not only the pruning, but also the new plants, or at least their beginnings.
Much depends on you, your deeds and your drive. For Israel, which is involved in such a difficult and all-encompassing, struggle, it is essential to have A sound and solid foundation of a growing economy that can allocate resources to defense, social justice and the absorption of immigrants. You are perhaps the most important basis for assuring progress toward the totality of the country's objectives in all areas. Your success in the success of all of us.