'File 11/32 Royal Commission on Palestine' [‎19r] (37/308)

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separation of Sind from Bombay and of Burma from the Indian
Empire; and in accordance with those precedents a Finance
Commission should be appointed to consider and report as to what
the amount of the subvention should be.
The Finance Commission should, also, consider and report
on the proportion in which the Public Debt of Palestine, which
now amounts to about £4,500,000, should be divided between the
Arab and the Jewish States, and other financial questions. The
Commission should also deal with telegraph and telephone systems
in the event of Partition.
5. British Subvention
The Inter-State Subvention would adjust the financial balance
in Palestine ; but the plan involves the inclusion of Trans-Jordan
in the Arab State. The taxable capacity of Trans-Jordan is very
low and its revenues have never sufficed to meet the cost of its
administration. From 1921 to the present day it has received
grants-in-aid from the United Kingdom, wdiich have amounted
to a total sum of £1,253,000 or an average of about £78,000 a year.
Grants have also been made towards the cost of the Trans-Jordan
Frontier Force, and loans to the amount of £60,000 have been
provided for earthquake-relief and the distribution of seed.
The Mandate for Trans-Jordan ought not to be relinquished
without securing, as far as possible, that the standard of administra
tion should not fall too low through lack of funds to maintain it ;
and in this matter the British people might fairly be asked
to do their part in facilitating a settlement. The continuance of
the present Mandate would almost inevitably involve a recurrent
and increasing charge on the British Treasury. If peace can be
promoted by Partition, money spent on helping to bring it about
and making it more effective for its purpose w r ould surely be well
dfcpent. And apart from any such considerations the British people
pi would, it is believed, agree to a capital payment in lieu of their present
annual liability with a view to honouring their obligations and
- making peace in Palestine.
In the event of the Treaty system coming into force, Parliament
should be as ked to make a grant of £2,000,000 to the Arab State.
6. Tariffs and Ports
The Arab and Jewish States, being sovereign independent
States, would determine their ow r n tariffs. Subject to the terms of
the Mandate, the same would apply to the Mandatory Government.
The tariff-policies of the Arab and Jewish States are likely to
conflict, and it would greatly ease the position and promote the
interests of both the Arab and Jewish States if they could agree
to impose identical customs-duties on as many articles as possible,