May I refer you to paragraph 4 of Sir Alexander Cadogan’s letter of 20th February, in which he referred to the question of the preparation of the Palestine estimates for the financial year 1948/49.
The reply to the enquiry you made on behalf of the Commission has now been received from His Majesty’s Government and is as follows:
It is impracticable for the present Government of Palestine to prepare a budget for the full year 1948/49, as estimates of revenue and expenditure must be conditioned by the plans and policy of the Commission. As the Commission has already been informed, a budget is being prepared for the months of April and May 1948 (with two blank columns so that figures after May 1948 may be inserted as required), and collection of revenue will, so far as is practicable, be continued by the present Government up to the termination of the Mandate. It is proposed that arrangements for the transfer of assets, including any liquid balance, and liabilities should form the subject of discussion with the Commission,