Middle East: Money Walks, Nobody Talks

As Israel's economy falters, diplomacy stumbles to a halt

Former Secretary of State Henry Kissinger remarked during a speech in New York last week that Israel is suffering from such grave economic problems, and the Arabs from such profound divisions, that any significant progress in Middle East diplomacy is unlikely for the present. That sounded about right. Israel's new Prime Minister Shimon Peres is eager to discuss a thick file of diplomatic matters with President Reagan during a visit to Washington this week. But for Israel, which has a current annual inflation...

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