PALESTINE. The United Kingdom Government's statement of policy in
May, 1939, set a definite limit of 84,000 to further Jewish
emigration except with Arab consent. This policy was reaffirmed in
March of this year after considerable discussion in War Cabinet,
certain members of which-in particular, Winston Churchill-very
sympathetic towards the Jews.

Zionists have never accepted this position and attempted to break
the policy down by organizing transport from central European
countries of considerable numbers of Jews of all ages and both
sexes in unseaworthy vessels to the shores of Palestine, where
attempts were made to disembark passengers in small boats under
cover of darkness. Owing to difficulties of interception at night
Palestine Government took the power to seize vessels which were
brought into Haifa, the captains and crews being sentenced to long
terms of imprisonment and ships confiscated. The Jewish
passengers, however, had to be released, but this was met by
deducting their numbers from the next six months' quota.

This procedure had a deterrent effect, but problem has again
become acute and has assumed a serious aspect. There is evidence
that the Axis Powers are behind the recrudescence, their object
being to arouse the Arab world against the United Kingdom and to
introduce enemy agents into Palestine and the Middle East.

So gravely does the Secretary of State for the Colonies [1] regard
the danger of inflaming the Arabs that he has induced the War
Cabinet to agree to the deportation to Mauritius of the two
shiploads already arrived at Haifa with 1,800 Jews, where they
will be interned for the period of the war. Another ship with a
further 1,800 Jews is now approaching the coast of Palestine. The
Secretary of State for the Colonies is determined to prevent their
landing, but is in difficulty as to where to send them as the
possibilities of Mauritius are exhausted and shipping is not
available to take them to West Indies, the only other place with
which the Secretary of State for the Colonies might be able to
make necessary arrangements. The Secretary of State for the
Colonies is convinced that if he can deport and intern the 1,800
now in sight, plus possibly another shipload-3,500 in all-in
addition to those sent to Mauritius, he would stamp these attempts
out.

Being very worried as to serious effect on Arabs if this illicit
emigration cannot be stopped and knowing that I had strong views
in regard to the danger of arousing the Arab world against us, he
approached me in the first instance to enlist my support behind
him with the War Cabinet of whose attitude he was a little
apprehensive owing to pro-Jew tendencies of some of its Members.

In the course of my discussions with him he asked me what I
thought would be the reaction of the Commonwealth Government if an
approach were made with a view to Australia agreeing to take up to
say 3,500 of these illicit Jews and interning them for the period
of the war, of course on the understanding that the United Kingdom
Government would bear whole of costs and specifically undertake to
re-export them out of Australia on termination of hostilities.

I told him that it would be asking a great deal as in addition to
the obvious political difficulties, you would probably have to
pass special legislation to take power to intern them, they not
being enemy aliens.

The upshot of our discussions was that I undertook to put the
whole position to you and get your reactions. I made clear to him
that I was only doing this because I was apprehensive that there
was not a sufficient realization in the minds of some of the
members of the War Cabinet of the danger of inflaming the Arab
world and if some way of handling the position was not found the
War Cabinet might allow the illicit Jews into Palestine with
results upon the Arab world that are unpleasant to contemplate.

Please let me have your reactions as soon as possible.

Personal and self only. Is not this perhaps sort of question that
ought to be considered by your Advisory War Council.

BRUCE