867N.00/412: Telegram
The Consul at Jerusalem (Wadsworth) to the Secretary of State
[Received November 10—11:20 a.m.]
Palestine situation has been seriously complicated by the British Colonial Secretary’s announcement November 5 that Jewish immigration while restricted on grounds of lessened economic absorptive capacity as to number of authorized labor immigrants, is to be permitted to continue on the same basis as before termination of Arab [general strike].
Jewish circles here and abroad while denying existence any basis for reduction of labor schedule view developments as “important victory in principle”. Arab circles while recognizing no contrary [Page 455] assurances were given unanimously charge British Government with bad faith and yielding to Jewish presumption. Country-wide support is given to Higher Committee decision November 6 “not to cooperate with the Royal Commission” due to arrive Palestine tomorrow morning.
Local British circles are inclined privately to consider publication of labor’s schedule at this juncture as politically inept and while regretting Arab decision view it as logically consistent with past action and pronouncements.
While events of past month have borne out prognostications my telegram of October 12, noon, regarding gradual cessation of violence and dispersal Arab bands, present developments lead well informed observers to fear recurrence of disorders unless Royal Commission recommends conciliatory gesture.
Fostered by former district strike committee, anti-Jewish boycott is gaining strength. While Jewish economists scout its effectiveness other observers sense strong potential danger in the possibilities for trouble-making of this country-wide organization. There seems to be no doubt, however, that the military are now in a position to deal expeditiously with any situation which may arise although unable to prevent isolated acts of terrorism.