Sacher Reports to Zionist Congress on Progress in Palestine Consolidation Efforts

Harry Sacher, member of the Zionist Executive in Jerusalem, around whose policies much controversy centers among the Congress parties, submitted the report of the Executive’s work during the past two years at Sunday afternoon’s session of the Sixteenth Zionist Congress. The report read:

“I shall endeavor to submit a general outline of the problems which the Palestine Zionist Executive had to deal with during the last two years and the principles which the Palestine Zionist Executive adopted in grappling with them. For convenience, we shall arrange the problems in three groups: first, problems connected with the Yishub; secondly, with organization; thirdly, with the government.

“The criticism levelled against the Palestine Zionist Executive is that it did not concern itself sufficiently with the Yishub. It is true that the Palestine Zionist Executive was not represented at public meetings and demonstrations, although Miss Szold always gave of her scanty leisure in order to represent the Palestine Zionist Executive. But the policy of the Palestine Zionist Executive toward the Yishub has been governed by two main principles: first, to encourage the Yishub to develop its own powers of self-help and to assume, as far as possible, its due measure of responsibility, because the tendency has gone too far towards looking upon the Zionist Organization as a kind of providence from which salvation is to be demanded on all occasions, great or small, pertinent or impertinent; and, secondly, the Palestine Executive was always prepared to advise, assist and intervene on behalf of the Yishub with the administrative authorities. To illustrate, we refer to three classes of problems when the Palestine Zionist Executive endeavored to help the Yishub, namely: local government, industry and taxation.

“The Palestine government published a draft of the local government ordinance which gravely affected the position of the local authorities. That draft has been withdrawn and although the Palestine Zionist Executive does not claim that the withdrawal was wholly due to its intervention, nevertheless, it was only after this intervention that the High Commissioner expressed to the representatives of Tel Aviv full confidence in their administration and appreciation of their efforts to settle the Tel Aviv affairs. Also through the intervention of the Palestine Zionist Executive, a floating loan to be funded at 6 per cent interest, was arranged in order to enable the settlement of the indebtedness of Tel Aviv within about ten years.

EXECUTIVE’S PART IN INDUSTRY

“The Palestine Zionist Executive found in Palestine industry a very difficult situation which was chiefly due to the government’s lack of appreciation of the importance of industrial development. The Executive endeavored to convince the government that industry is Palestine’s real future, which could only be secured by a comprehensive, far-sighted tariff policy. The customs relations between Palestine and Syria were settled satisfactory to Palestine industry. The customs tariffs of Palestine have been recast with a view to protecting the development of Palestine industries. The Executive has not yet succeeded in convincing the Palestine government that industry and commerce should be represented on the Tariff Board, but the latter readily received and listened sympathetically to Jewish representatives.

“Regarding industrial loans, the Executive had neither the means nor the desire to pursue a policy of loan making, because of the multiplicity of credit institutions which exist and to whom the function properly belongs. Partly as a result of the initiative of the Palestine Zionist Executive, these credit institutions have been coordinated and a substantial reduction in the rate of interest effected.

“The essential element of industrial development is the preservation of harmony in the relations between employers and employees and the primary condition for the investment of new capital in Palestine industry. The Executive can exercise its authority in this field. The Palestine Zionist Executive adopted a policy to endeavor to bring interested parties together and facilitate agreement between them in this connection. It is the pleasant duty of the Palestine Zionist Executive to congratulate both parties upon the admirable spirit of accommodation which governed their deliberations.

“Although the question of the employment of Jewish labor on the land is not anywhere near a final solution, the tension between the Jewish farmers and Jewish laborers has decreased and the number of Jewish workers on the land has increased, which is partly due to the influence exercised and the confidence reposed in the Executive.

“The Palestine Zionist Executive also concerned itself with the railway policy. The Palestine railways are state property and the management directed a railway policy toward extracting the utmost possible from the traffic. The Executive repeatedly impressed upon the government that the railways are a powerful instrument for the economic development of the country and therefore should be employed largely to that end. Although no tangible results have been reached so far, it is believed that the Executive’s view has steadily gained ground.

“The unemployment question formed the greatest and most insistent problem of the Yishub. The Palestine (Continued on Page 7)

Executive faced 7,000 to 8,000 unemployed, besides a large fringe of persons without means, not belonging technically to the laboring classes. At least two grandiose proposals for dealing with the unemployment were urged upon the Executive, one to make a special appeal for £200,000; a second to raise £365,000 for colonization of the unemployed. Both proposals were rejected, mainly because it was hopeless of raising these sums. The Executive believed that the unemployment was not solely the duty of the Executive, but also the Palestine organization’s, the government’s and the Yishub’s itself. The Pica, Palestine Colonization Association; the Palestine Economic Corporation, the Keren Kayemath contributed toward the solution of the unemployment problem, as well as the government, for whom it was a new thing to concern itself with unemployment. The Zionist Organization also raised and spent a considerable sum, and slowly the Yishub appreciated its responsibility and capacity to contribute toward the abolition of unemployment.

“In the field of colonization, an embarrassed state prevailed. Hardly any new colonies were completed, in addition to which, a few months preceding the assumption of office by the Palestine Executive, a large number of new colonies were started without sufficient funds to complete them. The utmost that the Palestine Zionist Executive could hope for was to maintain the existing colonies until funds for their completion and consolidation could be gathered. The difficulties of the Palestine Zionist Executive were increased by the partial or total failure of the crops in a large number of colonies last year. The Palestine Zionist Executive succeeded in maintaining all the existing colonies and also made a small contribution towards their consolidation. The Executive emphasizes that the policy of establishing a large number of colonies whose completion must be extended over a long term of years brings suffering to the colonies and financial loss to the Zionist Organization.

“The utmost, urgent task of the Palestine Zionist Executive was to finish all existing settlements which have precedence over every other. The Palestine Zionist Executive also succeeded in securing from the Palestine Government a considerable measure of relief for the colonies from the tithe during the bad crop time. Taxation forms a vital problem of colonization and it is the avowed policy of the government to substitute a single land tax for the tithe and various other agricultural imposts.

“The Palestine Zionist Executive surveyed the existing colonies and detailed an estimate of costs for completion of the consolidation, thus succeeding in effecting certain economies, and also to reduce appreciably the cost of future colonization. The Palestine Zionist Executive failed to obtain contracts with the colonies which the Fifteenth Congress resolved, as no agreement was reached regarding the fundamental question of the rate of interest on loans and the period of amortization. Whereas the Palestine Zionist Executive demanded 2% interest, the colonists insisted on 2%.

“With regard to problems connected with organization, the first was the urgent necessity of sanitating the finances of the Zionist Organization. For years, the expenditure exceeded the revenue, debts accumulated, the salaries of teachers and officials were many months in arrears. Owing chiefly to the failure of the Zionists throughout the world, particularly in America, to fulfil promised contributions to the Zionist revenue, the task of sanitation could not be completed. Nevertheless, debts were appreciably reduced, particularly the floating debt. In addition, the credit of the Palestine Zionist Executive was restored and the arrears in salaries wiped out. But it was feared that owing to the failure of the revenue, in the closing months of the year, a turn for the worse may come.

“The Palestine Zionist Executive faced the collapse of two important closely connected private institutions, the American Zion Commonwealth and the Meshek. The bankruptcy of these two corporations would have meant the bankruptcy of the Zionist Organization in America and the return into Arab hands of large areas, some containing Jewish settlements.

“The Zionist Organization had to take over the task of liquidating the American Zion Commonwealth, Theodor van Vriesland undertaking the onerous post of liquidator. The Zionist Organization, in this connection, made very havy financial sacrifices but saved the name of the Zionist Organization of America and averted a disaster in the Jewish settlements.

“In the field of education, in spite of financial embarrassment, the Executive succeeded in maintaining and improving the existing system. No one could put more time, thought and labor into this task than Miss Szold, who secured the services of Dr. Berkson. Without considerable sums which Miss Szold raised privately, the budget of the educational department would not have been balanced. Steps were also undertaken towards a reduction of the health services without materially affecting their efficiency.”

The report further refers to the relations with the Keren Hayesod and the Keren Kayemeth. “It was the Executive’s view that as the supreme organ of the Organization, its will must prevail. The relations between the Palestine Zionist Executive and the Keren Hayesod were throughout harmonious. However, the Executive regrets that it is unable to record equally satisfactory relations with the Keren Kayemeth. The Keren Kayemeth is the land purchasing instrument for colonization, therefore its activities must be conducted in ac- (Continued on Page 8)

cordance with the colonization policy and the plans of the Executive, the latter having the decisive word. The Keren Kayerneth, however, appears to regard itself entirely as an independent institution, not bound to consult or take directions from the Executive. This situation the Congress should not allow to continue.

“Problems connected with the government. The foundation of influence with the government must be the creation and maintenance of mutual confidence. The Executive believes that the relations between the government and the Palestine Zionist Executive have certainly not deteriorated during the last two years. That claim can be tested with regard to the achievements in the employment of Jewish labor in the public works and immigration. During the history of the civil Palestine administration, the principle which governed the government and the municipal contracts was to accept the lowest tenders, which meant the payment of lowest wages or a practical exclusion of Jewish labor. The Palestine Zionist Executive submitted that such a policy could not be reconciled with the duty of the government under the Mandate, of creating economic conditions necessary for the development of a Jewish National Home nor with the social obligations of the civilized government. Without claiming the achievement of satisfactory progress, the Palestine Zionist Executive succeeded in obtaining from the government, in principle, the recognition of its duty to secure Jewish employment in public works under conditions possible for the Jews and obtaining to a limited extent the application of this principle. This advance, although limited, is of real importance, and the duty of the succeeding Executive will be to advance until a satisfactory result is achieved.

“With regard to migration, 600 plus 2,400 immigration certificates were secured which is due not only to the improved economic conditions, but also to the improvement of relations and mutual confidence.”