The World

Secretary of State George P. Shultz praised the Israeli government for the painful steps taken to put the country's economy in order. Shultz said Washington is ready to support Israel in its austerity program with "supplemental economic assistance." Earlier this year, Washington told Israel that economic reforms would be needed to justify a request for $1.5 billion in additional U.S. economic aid. In Israel, the dominant labor organization Histadrut followed a one-day strike with a demand that the government not implement key provisions of the austerity plan.

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