J. D. B. News Letter

British House of Lords Debates Dead Sea Concession; Political as Well as Economic Aspects of Concession Emphasized (By Our London Correspondent)

When the question of the concession to exploit the salts of the Dead Sea. heatedly debated in the House of Commons, was raised in the House of Lords, the government was asked to make a statement with regard to the granting of the concession. Lord Islington asked the government to reply to the following points:

(1) Whether they have received aplications for the concession and from what quarters.

(2) Whether they have in contemplation the selection of any one applicant as suitable for negotiation, and if so, whom.

(3) Whether, in view of the great value and the important nature of the products, the Government can state what conditions they intend to impose for the protection of all the interests concerned, and to ensure the adequate development of the enterprise.

Lord Islington said: “This question deals with a subject which, I understand, has been under the consideration of the Government now for some time past, and if the reports in the public press be true, the consideration has extended to certain negotiations that have taken place with individuals. If the reports are only approximately correct which have been made by expert chemists of high repute, confirmed also by an expert Deparmental Committee of the Government, in regard to the salt deposits in and around the Dead Sea, I think there is little doubt in the mind of anyone who has studied these reports that; both in regard to quantity and quality, there exist in that area deposits of quite immense value and importance. It is stated that the deposits in and around the Dead Sea are similar in character to those now mined by the Germans in the Strasbourg and Alsace districts, so that, with capable administration, it may be presumed that these salts around the Dead Sea can be mined with even greater facility than is done by the Germans, and at a considerably lower cost.

“This concession undoubtedly is one of quite exceptional importance. It is not only important in regard to the potential value of the deposits intrinsically, but it is of great importance for reasons of a very far-reaching character, both political and economic.

“So far as the political aspect is concerned, these deposits lie partly in the mandated territory of Palestine, and partly in the mandated territory of Transjordania. The line of demarcation. I believe between those two territories, under mandatories of whom the British Government are the trustees, lies right down the centre of the Jordon and the Dead Sea. It may be assumed, therefore, that any concession that is granted will have to lie across these two respective countries. I should like to point out, by way of emphasising this political aspect of the matter, that these two territories, although under British mandatories, are controlled under quite different jurisdictions. You have in the one case in Palestine a British Government and a Jewish executive, with a population in which Arabs largely preponderate, while in Trans-Jordania you have an Arab king, King Abdullah, with a practically wholly Arab population. It is obvious, therefore, I think that to whomsoever this concession is granted most careful provision should be made that the claims of these two countries and of their people should be protected and satisfied. In considering a concession of this character, therefore, there will inevitably arise questions of a political and racial character, which may develop into matters of very serious moment. The situation in that event, I would add, would not be confined within the areas of those two countries, but would unquestionably extend far away to the east.

“There is one other very important aspect of this concession. This deposit, with its immense amount of chloride of potassium, which, I believe, is estimated by experts to represent something around 1,000,000,000 tons of potash, to say nothing of the other auxiliary chemicals of the greatest possible value, that are to be found in this area, contains products which are daily becoming more necessary for fertilizing agricultural land over the whole world. In this country undoubtedly, if the cost of this particular fertilizing product could be brought within reasonable dimension, it would be of the greatest possible value, especially in the cultivation of beet and other agricultural roducts. It is in very great demand at the present time in many other parts of the Empire, in Australia, in Canada. and in the Sudan. And if the psice of this potash became more reasonable. I have no doubt it would find its way with great advantage into practically all the countries of the Empire. At present the supply of potash is almost exclusively in the hands of a German monopoly and in correspondence with that monopoly, the cost of potash to agriculturists is extremely high. It is I believe, somewhere round about £8.10s. 0d. a ton at the present time, with the prospect of an increase in the early future.

“During the War this monopoly was used by the Germans as a very formidable weapon against us, with the result that potash increased in cost until in the extreme periods of the War it was something over £100 a ton; I have alluded to this aspect of the question because I venture to suggest to the Government regarding a matter which I am sure they have taken into full consideration, that to whomsoever the concession is granted, the group ultimately selected shall have no connection direct or indirect with the German monopoly, but shall be in essence a British group and one which can stand outside all existing undertakings so that the market may be freed and more reasonable prices assured. This deposit is undoubtedly a matter of very great importance to our Empire and of immense importance, therefore, to the whole of the consumers of the world. Under all the peculiar circumstances surrounding this concession, seeing that it stands in a different category from many concessions which are granted, and that so many interests of vital importance are concerned, I urge that it should not be dealt with exclusively as a Departmental matter. It may become of such immense importance to the Empire and the world that it should stand quite outside of Departmental consideration and should be most carefully considered and ultimately decided upon by the Government as a whole,” he declared.

Lord Danesfort spoke of the concession as a vital question not only in the interests of the mandated territories concerned, but of this country and the Empire as a whole. He dealt with the effects of the German potash monopoly. “I believe.” he said. “that the Germans control something like 70 per cent of the market and the French perhaps something like 30 per cent. As far as America is concerned, they endeavored, no doubt with a certain degree of success, to establish potash industries in that country, but it would appear that Germany has largely regained the American market and is now forcing prices up with a view to killing all competition. As Lord Islington said. we want potash in this country and in our Dominions. We want it for agriculture and we want it for chemistry. Fortunately for us there is this new great supply which will be available. It is vital to make provision, when you are granting those concessions, so that the concessionaires shall not be allowed to join up with Germany or any other monopoly. If they did the value of these enormous deposits in the Dead Sea would be largely lost. This is not merely a Departmental matter; it is a matter which involves large political, economic and other consideration which should be taken account of by the Government as a whole.”

The Parliamentary Under Secretary of State for Dominion Affairs Lord Loval realief to the question saving: “His Majesty’s Government is fully aware of

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