§ Mr. Denmanasked the Secretary of State for Foreign Affairs whether the principal Allied and Associated Powers of the Versailles Treaty, the United States of America, the British Empire, France, Italy and Japan, were the principal Allied Powers who selected His Britannic Majesty as the mandatory for Palestine; and, if so, whether he is ascertaining the views of these Powers as to the creation of the sovereign States contemplated in the Report of the Palestine Royal Commission?
§ Viscount CranborneThe principal Allied Powers other than the British Empire who are mentioned in the preamble to the Mandate for Palestine as having selected His Britannic Majesty as the mandatory for Palestine are the same as the principal Allied Powers who signed the Treaty of Sevres, that is to say, France, Italy and Japan. These Powers were members of the Council of the League of Nations which on 24th July, 1922, confirmed that Mandate and defined its terms, and Article 27 of the Mandate states that the consent of the Council of the League is required for any modification of the terms of the Mandate. The Mandate was subsequently accepted on certain conditions by the United States Government under the Convention of 3rd December, 1924. His Majesty's Government do not in the circumstances propose to take any steps to ascertain the views of the principal Allied Powers as such.
§ Mr. Holdsworthasked the Secretary of State for the Colonies what is the amount of the reserves in the Treasury of Palestine arising from accumulated budgetary surpluses; whether these reserves or any part of them have been earmarked for any particular purposes; and what is the nature of these purposes and the amount appropriated to each of them?
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§ Mr. Ormsby-GoreThe estimated surplus balances of Palestine at 1st April, 1937, amounted to £4,819,914. This total includes a sum of £1,185,782 which has been spent in anticipation of the proposed loan of £2,000,000 and which has been treated as advances from and not charges to revenue. The total cost of works in progress or projected in connection with this loan is £1,942,000. The completion of other capital works in progress or to which the Government is committed will cost approximately £917,000 and this expenditure will fall upon surplus balances to the extent to which it cannot be met from revenue. Other commitments include £500,000 for the necessary Treasury working balance and £516,000 for arrears of railway renewals.
The Government of Palestine have had in view further expenditure from surplus balances on various services exceeding the balance remaining after allowing for the commitments referred to. The whole question of future financial policy in Palestine will now require reconsideration in the light of the report of the Royal Commission.