would be exercised on the basis of recommendations made by the Provincial Governments. So long as the economic absorptive capacity of the province was not exceeded, the Central Government would authorise the immigration desired by the Provincial Government. It would have no power to authorise immigration in excess of any limitations proposed by the Provincial Governments. Thus, though the Government of the Arab Province would have full power to exclude Jewish immigrants from its Province, the Jewish Province would, normally, be able to admit as many immigrants as its Government desires.
As part of this plan, the experts suggest that it would become possible to accept the recommendations of the Anglo-American Committee for the immediate admission of 100,000 Jewish immigrants into Palestine, and for continuing immigration thereafter. The experts prepared a plan for the movement of 100,000 Jews from Europe into the Jewish area of Palestine, and this plan would be set in motion as soon as it is decided to put into effect the scheme as a whole. The immigration certificates would be issued as rapidly as possible, and every effort would be made to complete the operation within 12 months of the date on which the immigration begins. The immigrants would be selected, primarily, from Jews in Germany, Austria and Italy, and priority would be given to those who have already spent some time in assembly centres in those countries and to others who, though no longer in those centres, were liberated in Germany and Austria. Within those groups, priority would be given to building craftsmen and agricultural workers, young children, the infirm and the aged. The bulk of the 100,000 would be drawn from Germany, Austria and Italy; any certificates available for the Jews in other countries of Eastern and South Eastern Europe would be issued only to orphan children. Shipment would proceed at the maximum rate consistent with the clearance of the transit camps in Palestine, in which the immigrants would be temporarily accommodated until they could be absorbed.
Under this plan, the United States Government would be asked to undertake sole responsibility for the sea transportation of those Jewish refugees, to whom I have referred, from Europe to Palestine. They would provide the ships and would defray the whole cost of sea transportation. They would also provide food for the immigrants for the first two months after their arrival in Palestine. The cost of transferring and settling this number of persons in Palestine would, of course, be considerable. The Jewish organisations have accepted the financial responsibility, and the experts saw no reason why the required finance should not be found from reparations, from contributions by world Jewry and from loans. The experts accepted the recommendation of the Anglo-American Committee that improvements of the economic and social conditions of the Arabs in Palestine were desirable. The programme which they suggested would include the provision of a health service comparable to that already available to the Jews, an expansion of educational facilities, the provision of cheap credit for the Arab cultivators, and other measures designed to increase the productivity of the land, the promotion of the co-operative movement, the development of light industries and improvements in both rural and urban living conditions.
The expert delegations gave warning that, for some years, the implementation of these and other plans for the improvement of economic opportunities and living standards in Palestine would impose heavy capital costs not eligible for loans, and would constitute a severe strain on the finances of Palestine. The setting up of the provincial system would also entail a deficit in the budget of the Arab Province which would have to be met by a Central Government subvention. Further financial aid for Palestine would be required if the plan, as a whole, is to be carried out. To meet this situation, the experts suggested that the United States should be asked to make a substantial grant to the Government of Palestine, to be used principally for financing Arab development projects not suitable for self-liquidating loans, and for assisting in the meeting of extraordinary expenditure during the transitional period, while this country should be asked to take ultimate responsibility for meeting Palestine’s annual budgetary deficit up to the time when increased revenues made this unnecessary.
The experts believed that the need for economic development in Palestine should be considered against the background of the Middle East as a whole. They understood that the Governments represented in the Arab League were now examining the possibilities of economic development in their countries, and they, therefore, suggested that if any of those States found difficulty in obtaining international loans for this purpose the United States should authorise large-scale development loans. These loans would be made through an appropriate agency for the development of the Middle East region, including Palestine. Most large-scale development from which Palestine could benefit should he undertaken in cooperation at least with Transjordan, and probably with Syria and Lebanon. The experts proposed that, subject to the consent of the Government, of Transjordan, the common water resources of both Palestine and Transjordan should be surveyed as soon as possible by consulting engineers acting under government auspices.
I have now completed my outline of the recommendations of the expert delegations. His Majesty's Government, believing that these recommendations represent the best line of advance towards a solution of the problem, informed the United States Government of their willingness to accept them as a basis for negotiation. We had hoped before the Debate to receive from President Truman his acceptance, but we understand that he has decided, in view of the complexity of the matter, to discuss it in detail with the United States expert delegation who are returning to Washington for the purpose. The President is thus giving further consideration to the matter, and we hope to hear again from him in due course.
Meanwhile, however, the situation in Palestine will brook no delay. We are inviting the representatives of the Jews and Arabs to meet us for discussion of these problems and we hope that we shall be able to bring before them as a basis for negotiation the plan recommended by the expert delegations. If it is found acceptable, our intention would be that it should be embodied in a trusteeship agreement for Palestine. But I should make it clear that we mean to go ahead with discussion with Arabs and Jews of a constitutional scheme on these lines. We believe that it offers many advantages to both communities in Palestine.
The Jews will be free to exercise a large measure of control over immigration into their own Province, and to forward there the development of the Jewish national home. The Land Transfers Regulations will be repealed. It will be open to the Government of the Arab Province to permit or to refuse permission to Jews to purchase land there, but the area of the Jewish Province will be larger than that, in which Jews are free to buy land at present. The Arabs will gain, in that the great majority of them will be freed once and for all from any fear of Jewish domination. The citizens of the Arab Province will achieve at once a large measure of autonomy and powerful safeguards will be provided to protect the rights of the Arab minority left in the Jewish Province. To both communities the plan offers a prospect of development, of which there would be little hope in a unitary Palestine.
