867n.156/12
The Ambassador in Great Britain (Houghton) to the Secretary of
State
London, January 30, 1929.
[Received
February 13.]
No. 3334
Sir: I have the honor to refer to the
Department’s instruction No. 1617, December 4, 1928 (File No.
867n.156/10), and to state that the construction of the proposed harbor
works at Haifa, Palestine, was discussed with the appropriate official
of the Foreign Office and a memorandum was left with the officer, a copy
of which, in triplicate, is enclosed,59 according to the Department’s
instructions.
[Page 68]
A note has now been received from the Foreign Office, a copy of which I
also have the honor to enclose, setting forth the position of the harbor
work at Haifa, and stating that no discrimination will be exercised in
the allocation of the local contracts.
I have [etc.]
For the Ambassador:
Ray
Atherton
Counselor of
Embassy
[Enclosure]
The British Secretary of State for Foreign
Affairs (Chamberlain) to the
American Ambassador (Houghton)
London, 29 January, 1929.
No. E 505/57/65
Your Excellency: On January 3 Mr. Atherton
left in this department a memorandum on the question of the proposed
work for the construction of a new harbour at Haifa in
Palestine.
- 2.
- Enquiries have since then been made as to the position, and I
now have the honour to inform Your Excellency that the
representations contained in that memorandum are based on a
misapprehension. His Majesty’s Government in the United Kingdom
have no intention, as appears to be assumed in the memorandum,
of violating any of their obligations, either under the
Palestine Mandate or under the Anglo-United States Palestine
Mandate Convention of December 3, 1924.
- 3.
- It is true that some months ago it was the intention of the
Government of Palestine to invite tenders from selected firms
for the construction of the proposed new harbour at Haifa. His
Majesty’s Government are not prepared to admit that in
acquiescing in this procedure they would have been acting in
conflict with any of their international obligations. But in
fact no invitations to tender were issued as it became apparent,
in December last, that factors had arisen which rendered it
impracticable to proceed further with the proposed work by the
method which had up till then been contemplated, and a definite
decision to this effect was taken at the end of December.
- 4.
- Apart from certain major factors of uncertainty in connexion
with the future of the proposed harbour at Haifa, serious
difficulties have arisen in regard to the question of the
employment of local labour. There has been a considerable amount
of unemployment among Jews, who have settled in Palestine in
consequence of the scheme for a National Home for the Jews, and
the opportunity which the proposed harbour works will afford of
providing work for Jewish labour is one that cannot be
neglected. Owing to the different standards of life that prevail
among Arabs and Jews respectively, special provisions as to
wages etc., will have to be made
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if the above object is to be secured, and
it would be difficult, if not impossible, to include such
provisions in any contract which could be made with a firm
contracting for the whole work.
- 5.
- Further unexpected difficulties have arisen in connexion with
the quarrying of the stone for the proposed new breakwater. The
most suitable quarry site capable of supplying stone of
satisfactory quality in blocks of sufficient size is found to
contain exceptionally important antiquarian remains, and
therefore cannot, in view of the Palestine Antiquities
Ordinance, be used for the purpose, until its antiquarian value
has been more fully investigated. In any case it will be
necessary to impose considerable restrictions on quarrying,
which it would be difficult to embody in a contract without
prejudice to the interests of the Palestine Government.
- 6.
- In the circumstances it has been decided that the system of
tendering for the construction of the harbour work under a
single contract must be abandoned, and that the work must be
carried out departmentally, contracts being let out locally for
the supply of materials or the execution of sections of the work
as circumstances permit. No discrimination will be exercised in
the allocation of these local contracts.
I have [etc.]
(For the Secretary of State)
H. J. Seymour