J. D. B. News Letter

Economy in the Palestine administration is urged upon the High Commissioner, Sir John Chancellor, by the Secretary of State for the Colonies, Mr. Amery, in the course of an exchange of correspondence between them on the financial position of Palestine in regard to the 1929 Estimates, which has just been published here. It is necessary, Mr. Amery writes in reply to Sir John’s statement of the position, to prepare a reserve program cutting the Palestine Government Services by £100,000, according to the recommendations made by the Economy Commission appointed in June 1928 by Field Marshal Lord Plumer, then High Commissioner, and to give effect to this program in 1930 if the necessity arises.

Mr. Amery gives his approval to the intention of the Palestine Government to decrease the amount of public works carried on in the country, on the ground that large extraordinary works were undertaken during the recent period solely for the purpose of relieving unemployment.

Mr. Amery suggests also an increase in the fees collected by the Immigration Department, for the purpose of making the Department self-supporting. He praises the Budget of the Railways Department, which shows an excess of revenue owing to the economizing measures undertaken by this department.

The High Commissioner, in his statement to the Colonial Office to which Mr. Amery made his reply, explained that 1928 was an abnormal year on account of the drought, the invasion of locusts and economic depression, but in 1929 the revenue would increase. The surplus balance at the end of 1928, he stated, was £360,206, as against £1,387,206 at the end of 1927, because £206,550 had been paid to cover the deficit of the Military Administration, £650,000 had been paid towards Palestine’s share on the Ottoman Public Debt charges, and £84,357 for the Jerusalem water supply, etc. It was estimated that the 1929 revenue would amount to £2,540,312 and the expenditure was estimated at £2,577,336.

The construction of the Haifa Harbor and the development of orange plantations, the High Commissioner further stated, would stimulate trade and industry, which would increase the revenue.

Expenditure on the police force, it was pointed out, cannot be reduced, because of the special circumstances in Palestine, and because in the Orient disorder is apt to occur without notice in any place. There is a reference also in the statement to the Arab Agricultural School established with part of the funds bequeathed to Palestine by the late Sir Ellis Kadoorie. Instruction in the school, it is stated, will begin in the latter half of 1929. (Continued on Page 4)

The Commission appointed in June to recommend ways and means of balancing the budget was composed of Ernest Colville, District Commissioner for the North, who was chairman, and F. Pudsey, Director of Public Works, and Col. W. Hudson, the Postmaster General.

Two measures were suggested: first, the cutting of administrative expenses by reduction of staff, etc., and second, an increase of taxation. It was believed that the first of these measures would result in a saving of £150,000, while the second would perhaps bring in an additional revenue of £150,000, making a total saving of £300,000.

Mr. Luke, the Chief Secretary of the Palestine Government, soon after his arrival in the country to take up his post, told press representatives that considerable economies in governmental expenditure were contemplated in the 1929 Estimates, in accordance with the recommendations of the Government Commission. No vital government services would, however, be curtailed.