Housing Proposed for Soviet Immigrants : Israel: Sharon asks for 50,000 mobile homes and 40,000 prefabricated houses. Finance Minister Modai objects, pointing to the high cost.

Housing Minister Ariel Sharon introduced his controversial housing plan for Soviet immigrants at a Cabinet meeting Sunday, but action was delayed because of opposition from Finance Minister Yitzhak Modai.

Sharon proposed buying 50,000 mobile homes and 40,000 prefabricated houses in the next two years, calling on the government to build another 60,000 units each year over the next four years.

Sharon’s plan is mainly designed to accommodate Jewish immigrants from the Soviet Union. Some Israeli officials estimate that as many as 1 million Soviet newcomers could arrive within five years.

Director General Aminkam Oren of the Housing Ministry said projections indicate that 200,000 families will be homeless in two years if a new building program is not begun quickly.

Objections to Sharon’s crash housing program were made by Finance Minister Modai, who argued that the government could not afford such a massive plan, estimated to cost $13.5 billion.

Modai said after the meeting that a huge housing program would not leave any money “to create job opportunities.”

The finance minister and other officials have suggested that immigrants be put up in hotels, guest homes and hostels while awaiting permanent housing.

Sharon’s plan has also run into opposition from the local housing industry, which objects to the use of prefabricated units, most of which would have to be imported.

But senior Israeli officials are trying to figure out a way to head off conflict between the new Soviet arrivals and resident Israelis who have seen the cost of housing soar in recent months with immigration suddenly rising.

Some Israelis have moved into tents, declaring they could no longer afford to pay the steep rentals for apartments.

Small tent cities have sprung up around the country, and inhabitants plan a large demonstration in Jerusalem on Tuesday.

Cabinet sources said after Sunday’s meeting that budgetary officials will present their own plan for new housing at the next Cabinet meeting on Thursday.

Meanwhile, eight Arabs were being held Sunday as suspects in Saturday’s bomb blast on a Tel Aviv beach that killed a 17-year-old Canadian girl and wounded 18 others.

The bomb was set off during the Sabbath afternoon and caused widespread panic. The explosion killed Marnie Kimmelman, of suburban Toronto, a member of a group of university students touring Israel in a trip sponsored by the Canadian Zionist Assn.

Four Arab passersby were also injured when they were beaten up by enraged Israelis after the blast.

On Sunday, Tel Aviv Mayor Shlomo Lahat called the beatings of the Arabs “a disgrace, a shame.” He said security officials are doing all they can to protect the beaches and streets against such random bomb attacks.

The Canadian students said they will continue their tour of Israel as planned.

In the occupied territories, Palestinians observed a general strike to mark the 10th anniversary of Israel’s formal annexation of East Jerusalem, wire services reported. Most activities were closed down, Palestinians said.

The army closed the offices of Faisal Husseini, the leading Arab nationalist in the occupied territories and named by the army as one of the key figures of the Palestinian uprising.

The orders, valid for a year, said the action was being taken to protect public safety.

A nationalist from a prominent family with roots in Jerusalem extending back centuries, Husseini this year has concentrated on seeking backing among liberal Israelis for Palestinian self-determination.