Political report of the Executive of the Jewish Agency submitted to the ... Zionist Congress and the ... session of the Council of the Jewish Agency · 1937-08-01 · 8.1937 · p. Seite 80

80 I would take the opportunity of reiterating the request repeatedly put forward by the Jewish Agency for the re-establishment of a special Trade and Industry Department, separate from the Customs Administration, to devote itself entirely to the needs of industry. 10. The anomalous position of Palestine in its trade relations with other countries likewise calls for a remedy. Article 18 of the Mandate, which imposes on Palestine the policy of the open door and prevents it from discriminating in its trade relations between States, members of the League of Nations, in its present interpretation, merely serves to hamper the economic development of Palestine. In trying to find markets for its produce Palestine can take advantage neither of the possibility of reciprocal trade concessions nor of the weapon of retaliation. Its inability to apply a measure of reciprocity in its trade relations is reflected in the unduly adverse character of its trade balance and in the difficulty which the country is experiencing in marketing its expanding orange crop. The Jewish Agency submits that it could not have been the purpose of the Mandate to place Palestine under such disabilities as must cripple her commercial development and place her in a position of permanent inferiority in relation to all other countries. There would seem to be need of an authoritative reinterpretation of the non-discrimination principle which would lead Palestine out of the present impasse and give the country some measure of freedom in coming to an arrangement with such countries as are interested in trading with her on the basis of reciprocity. The proposal which the Jewish Agency would desire to advocate is that a double tariff system be adopted comprising minimum and maximum rates, the minimum to apply to countries purchasing from Palestine goods in a certain minimum proportion to Palestine's purchases from them, and the maximum to these whose purchase fall below that minimum proportion. The rate of reciprocity may be made flexible and subject to revision from time to time. Alternatively, a quota system may be introduced, the application of which is now becoming widespread throughout the. world. .Neither of these arrangements would appear to be discriminatory, since all countries would be free to avail themselves of it. The Jewish Agency would urge that all necessary steps be taken on the part of the competent organs of the League of Nations to secure an authoritative interpretation of Article 18 of the Mandate, such as would permit of the application of either of the proposals above outlined. 11. I desire to associate the Jewish Agency with the requests put forward by the General Council of the Palestine Jewish Community (Vaad Leumi) for increased grants-in-aid to Jewish education and health services. The Jewish Agency was gratified to learn that, with regard to the education grant-in-aid, a substantial