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Threatens to Hold Back Subsidy Unless Jewish Schools Are Re-opened This Month

The Palestine government today warned the Jewish Agency that it would not pay its subsidy to the Jewish schools unless the schools are re-opened some time this month.

The government made this threat in an effort to settle the dispute which has arisen over the control of the Jewish school system.

The Jewish Agency transferred to the Palestine Jewish National Council the responsibility of the budget of the school, undertaking to contribute £40,000.

Various Jewish groups, however, principally the municipality of Tel Aviv and the Jewish farmers object to placing control in the hands of the Vaad Leumi. They demand a larger representation for themselves than the Vaad Leumi is willing to offer.

The schools have remained closed during the progress of the dispute.

The government subsidy involved is in the amount of £20,000.