CAB23-58 — Page 47

Page 47

45

the various objections, in which he was followed

by the Secretary of State for the Colonies.

In the course of the discussion many

objections were raised against the proposals of

the Zionist Organisation. A number of tentative

alternative suggestions were considered for

assisting the Zionist Organisation to raise a

Loan, whether by an international guarantee, by

a purely British guarantee, or by means of an

investigation by the Financial organ of the

League of Nations into the soundness of the

proposal; but each of these suggestions was

found open to considerable objection.

The Cabinet were also reminded that before

long they were likely to be asked to consider

the projected railway and pipeline from Paghdad

to the Mediterranean, which, in the absence of

some financial support or guarantee, were

liable to be brought by the shorter route to some

port in Syria instead of to Haifa, and it was

suggested that the credit of the country

ought not to be pledged in support of the form

of development of Palestine involved in the

Zionist proposal until the railway and pipeline

had been considered. It was also pointed out that

details were lacking both as to the purposes to

which the proceeds of the projected Zionist Loan

were to be devoted and as to the financial

results of the earlier schemes of settlement of

the Zionist Organisation.

Page 47

Page 47

D

Page 47

Page 47