Palestine Government Opens Bids for Haifa Land Despite Denial It is Liquidating Assets

Despite the denial by the Foreign Office that the British administration in Palestine is planning to dispose of the Palestine Government’s assets prior to termination of the Mandate, the Government is going ahead with plans to seal valuable state property along the Haifa waterfront, it was learned today.

Advertisements have been submitted to local newspapers, for publication on Friday, inviting bids on 69 plots of ground in the port area. According to the advertisements, the government already gets ground rental from this tract of nearly $90,000 annually, on 49-year lease to private operators. The rental will be uppod to $144,000 beginning next July.

Meanwhile, it was announced that Eric Mills, formerly the government’s immigration commissioner and who is now a commissioner for special duties, has been appointed head of the “Liquidation Committee” which is preparing for the British evacuation. In this connection, it was learned that the committee has already drawn up estimates of state property which ostensibly cannot be removed or handed over to the successor administrations and is preparing to sell such property. The funds derived from such sales will be invested in government bearer bonds, it is stated.

Following a meeting yesterday of High Commissioner Sir Alan G. Cunningham with his department heads, instructions were issued today to speed the preparations for withdrawal. Plans are being worked out, it is understood, to halt the subsidies allocated to certain foodstuffs to keep prices down. Also, the director of the Palestine rail network, which is government-operated, disclosed that he has cancelled or-## to repair damage to the rail system resulting from extremist attacks. He added that all plans for expansion of the rail services are also being cancelled.