Papers of the Interdepartmental Conference on Middle Eastern Affairs [‎19r] (37/290)

that, if the French were entrusted in their spheres with the control
of the funds, they should at the same time incur the liability to
make up any deficiency. The difficulty of the situation was
increased by reason of the Arab and French local control. But in
view of the Sykes-Picot Agreement this could not be avoided. Did
the Treasury want the local adviser to refer to General Allenby
through the headquarters financial adviser ?
Mr. Water field said that might be of considerable assistance,
but at present the only financial adviser at headquarters was
Mr. Huggett, and he was only there for purposes of army
expenditure. The Treasury wanted headquarters control for civil
expenditure.
Colonel Gabriel said that in each area there was a chief
administrator, each with a financial adviser, but there were no fiscal
lines between the areas, and there was no co-ordinating authority.
The result of the lack of co-ordination was that the civil administration
suffered. He thought co-ordination was possible providing there was
a financial adviser, but the present situation in Palestine might be
compared to what the situation would be in India without a
Government of India.
Mr. Baldwin suggested that it would be a good thing for the
War Office to send out a financial adviser to put things straight.
The Chairman quoted the recommendation of the Treasury in
the Memorandum (Appendix I, 2 (1)), that a civilian financial adviser
should be sent out, and asked if he would be sent out by the
Treasury.
Mr. Baldwin said he thought that if a man like Sir Walter
Lawrence was sent out by the War Office he would be of great
service. The Treasury note was written without knowledge of the
Sykes-Picot Agreement.
Mr. Montagu, in reply to a question by the Chairman, said he
thought that it might be a good thing to send a man, but he
feared that he might find himself unable to do much in the French
areas.
Colonel Gabriel, in answer to a question put by the Chairman,
said that he thought that Lawrence would be effective, and would
not prove to be a fifth wheel. He considered, however, that he
would be better as a civilian coming from the Treasury. As
Government’s money was being spent it seemed to him that
an independent person was required. He did not think that
General Allenby was satisfied with his own arrangements, and
believed he would welcome expert advice. In his opinion, it was
better for Lawrence to go as a civilian if the appointment was to be
made a temporary one, but he must have military rank if it was to
be permanent.
General Kirke said that General Adlenby had repeatedly asked
for a financial adviser.
The Chairman said it was not for the Conference to select the
man. Whoever was chosen would be sent out on a mission, and
undoubtedly his name ought to be submitted to General Allenby.
If desired, he could, as Chairman, communicate with General
Allenby on this point.
Mr. Crosland expressed the hope that these civil funds would
not come under the War Office Vote.
Mr. Kidston said the Foreign Office Vote could not be used for
places like Damascus. They would provoke an immediate outcry
from the French.
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