Wedgwood Fails in Move to Balk Palestine Loan

The House of Commous today passed a measure authorizing the Palestine government to float a loan of pound 2,000,000, which will be guaranteed by the British Treasury.

The entire debate during the third reading was virtually a dialogue between Colonel Wedgwood, staunch supporter of the Jewish cause, and Sir Philip Cunliffe-Lister, British Secretary of State for Colonies.

OFFERS AMENDMENT

Colonel Wedgwood offered an amendment to the bill providing for a reduction from pound 250,000 to pound 50,000 of the sum set aside for settling displaced Arabs, stating that owing to the Palestine boom most of the displaced Arabs have been absorbed in industry and are no longer eager to return to the land, where they would have to pay rent. He also cited the fact that the displaced nomads had been compensated by the Jewish National Fund. These facts, he declared, “had been forgotten when officials compiled imaginary tales of Arab grievances.”

Sir Philip, who answered for the government, declared Great Britain would be guilty of a breach of faith if it accepted the amendment since the MacDonald labor government has committed the government to aid in the resettlement of displaced Arabs. He said there are only 899 cases of displacement in government files, but declared there is no obligation to assist this group if it refuses help. He assured Colonel Wedgwood that only the necessary sums will be spent on resettlement work.

ATTACKED SECOND READING

When the bill was presented for the second reading, Colonel Wedgwood attacked the measure, declaring there was no necessity for floating such a large loan. He pinted to the huge surplus in the Palestine treasury and warned the Palestine government that it was alienating the sympathy of the Jews, who had been only too eager to be friendly to Great Britain, he said.