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city. Again, whilst employment has been plentiful in the recent past, largely owing to briskness in the building trade, that boom cannot last for ever, and it is difficult to see whence the support will come for so big a community unless it is financed from abroad. On the credit side, the marvellous development of Tel-Aviv, with its Jewish mayor, its Jewish council, and its Jewish police, proves that the Jews are capable not only of profiting by what others have done, but of creating something entirely new, and this is of immense sentimental and moral value to a nation now re-established more or less on its own foundations.

In the foregoing pages, I have endeavoured to outline the recent history of Palestine and to describe the existing situation, thereby, I hope, suggesting to, and preparing my readers for, the changes and developments likely to take place in the future. When we come to details, these changes and developments may be grouped into three classes-financial, economic, and political. The fundamental factor in the financial position concerns the difficulty of supporting a decent Government and of doing what is absolutely necessary for the people with the money available. Much has been accomplished, but, although there is a surplus of revenue over expenditure, and although expenses have already been cut down, further reductions will have to be made because, sooner or later, it will be necessary to meet the charges for certain assets, such as railways taken over at the inauguration of the Civil régime. In the opinion of the writer, the District Administration, estimated to cost £E93,000 per year, is too heavy, considering the work it has to do; and, with the completion of a proper survey, a definite registration of titles and possible reforms in the system of taxation-particularly the tithe, which is expensive to collect-considerable economies should here be made. More of the Government offices might be combined, thereby saving the salaries of several of the higher-paid functionaries, and certain of the departments might be administered by necessarily experienced directors, assisted by fewer and perhaps less qualified subordinates than those at present employed. Also, at the present time Public Security, including police, pensions, and Palestinian Gendarmerie, costs about

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£E268,000 per year, in addition to the £E192,000 paid by the Home Government as the grant-in-aid for the British Gendarmerie. Tranquillity and safety are all-important, but as even these forces would be insufficient against a determined external attack, this charge seems altogether too heavy a burden for a country with a total revenue of only approximately £E1,820,000. Moreover, whereas the sum involved is much smaller and its work is a matter of vital significance, £E82,000 per year is a considerable budget for the Department of Public Health, especially as bare necessities must take first place, and a great deal is already being done by numerous hospitals and charitable institutions which exist for the benefit of the people at large.

When we come to the economic situation, it remains to be seen whether the present fiscal system, which amounts to a combination of certain specific duties with those ad valorem, should be maintained, or whether the import charges upon the materials required for many of the new industries can be simplified or reduced in such a way as to facilitate the development of those industries. The minerals contained in the waters of the Dead Sea are to be exploited, the hot springs at Tiberias are to be developed, and it is said that Jerusalem is to have the new hotel of which it is in very bad need. Until now there has been no local currency; the notes and coins in use having been furnished from Egypt. This has had the advantages of maintaining the stability of the exchange; but the disadvantages arising from the high value of the coinage in question. It has now been decided that Palestine shall have her own monetary system, notes being issued by the Official Currency Board in London under cover of securities to be held there.*

In addition to the much required electric power, to be provided under the Rutenberg schemes, which will alter the whole economic system, there are two proposals for the betterment of trade and the increase of prosperity in the country, namely, those for the construction of a harbour and for the improvement and expansion of

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*For details see Sir Herbert Samuel's Report and 'The Times,' Feb. 6,

1925.

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railways. The harbour question is far-reaching; for whilst there is severe rivalry between Jaffa and Haifa, each of which towns possesses claims to attention, the adoption of an adequate scheme, or schemes, will cost a great deal of money. In spite of the fact that goods cannot be embarked or disembarked owing to the state of the weather on a great many days of the year, Jaffa at present does more trade than Haifa, largely because it is the natural port of Jerusalem, and because of the proximity of many orange groves. But whereas this is practically an open coast town, with a very dangerous reef close to the existing quay, Haifa has the advantage of a certain natural protection. Consequently, whilst the facilities at Jaffa, particularly the quay facilities, ought to be improved, as they probably will be improved as a result of the recommendations of a Commission which was considering the question at the time of my visit, the Government seems to be right in favouring the construction of a deep water harbour for Palestine at Haifa. That place has a larger natural hinterland than Jaffa, and, with the improvement of internal communications, that hinterland may well include not only Transjordan, but parts of Syria and Mesopotamia.

Several projects for railway construction and improvement are under discussion. The most important of these is one for the extension of the present line northwards from Haifa and Acre to the Syrian frontier, where it would join a proposed French railway destined to run along the coast by way of Beyrout to Tripoli. The provision of this link, only the shorter part of which falls in British territory, would establish direct normal gauge communication between Calais and Cairo, except for the breaks at the Bosphorus and the Suez Canal; and it would transfer a good deal of traffic, especially tourist traffic, which now goes by sea from Egypt to Beyrout, on to the Palestine railways. At the Egyptian end of the system, managed by the Palestinian Authorities, a project is under debate for diverting the western part of the main line across the desert to Port Said, where facilities for traversing the Canal would be better than at Kantara, the present terminus. This would improve the communications with Europe, but slightly lengthen the journey to Cairo. And, lastly, there is a scheme for

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altering the route of the main line to and from Haifa, wh which now goes by way of Lydda (Ludd), in such a manner that it would pass through Tel-Aviv and Jaffa and some of the Jewish colonies in that neighbourhood. This plan, upon which the Zionists are extremely keen, has a further material advantage that it would increase the general traffic and improve the railway communications between Jaffa and Haifa without seriously interfering with those from Haifa to Jerusalem.

Turning to politics and to the future situation, all fair-minded people, however much they are opposed to the Balfour Declaration and to the terms of the Mandate arising out of it, have recognised that Sir Herbert Samuel has been fair and just, and for this reason his departure is generally regretted. But the appointment of Lord Plumer, who has gained great experience and done excellent work at Malta, carries with it the open 'dezionisation' of the Administration, it should give the Arab inhabitants a new confidence, and it provides the leaders of that community with a favourable opportunity of putting an end to their policy of obstruction without losing prestige with their more ignorant supporters. Will those leaders endeavour to complicate the position and exploit the moment to the still further disadvantages of the cause they purport to represent; or will they take the opportunity to work with a Government which has already provided the population with widespread advantages? In the former case there will be a renewed, and perhaps an increased, agitation based upon the unjustifiable idea that, with a Christian High Commissioner, there may be a chance of securing concessions which could not be obtained from Sir Herbert Samuel, and that now is the moment to try to obtain far-reaching changes in the terms of the Balfour Declaration or of the Mandate itself. This agitation would take the form of protests against the Palestine Order in Council of 1922, and especially against the composition and powers of the Legislative Council established under that Order. Such a policy can only result in the prolongation of the Administration in its present or a more conservative form; for neither His Majesty's Government, Lord Plumer, nor anybody else can gratify the extreme claims of the Arabs without stultifying the

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on whole of British policy connected with Palestine. Alteri natively, if the Arabs recognise the present favourable a chance, their bona-fide acceptance of the new situation band their real co-operation with the Government, their

acceptance and their co-operation being demonstrated by a willingness on the part of the best men to serve in the administration and by a termination of the opposition heretofore existing, would enable the new High Commissioner to adopt constitutional measures which were ti impossible to his predecessor. In a country like Palestine, nobody knows the real strengths of the various political parties or the precise programmes of which they are severally in favour. It is to be hoped, therefore, that 或 the principles of the 'National Party,' many members of which have already done good work by supporting the Government without approving of the Jewish !position, will attract sufficient adherents to insure at least a temporary Arab acceptance, even under protest, of the Balfour Declaration and of the Mandate which have been approved by the Allies, by the United States of America, and by the League of Nations.

To recapitulate and to conclude, it may be said that Sir Herbert Samuel was entitled when leaving Palestine to feel that its condition was much better and that the people are far more contented than at the time of his arrival. From the economic standpoint, a great deal remains to be done, and there is still a difference of roughly three-and-a-half million pounds between the annual worth of the imports and exports of the country. That disadvantageous surplus of imports over exports is partly compensated for by money coming from abroad, and particularly by the capital provided by the Zionists and by the charitable organisations interested in Palestine; but efforts must be made to increase the improvement shown in the value of the exports between 1920 and 1924. Politically speaking, however unpopular are the Balfour Declaration and the special position of the Jews, a British Mandate and the presence of the British in Palestine are not in opposition to the wishes of the vast majority of the people. The Arabs are, and will continue, discontented with the admission of the new Jewish population rather than with the presence of the Jewish community, which has existed for years; but

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