asked the Secretary of State for the Colonies what arrangements, if any, have been made by the concessionnaire under the Ruthenberg concession to erect the Yarkon power house; if any pressure is being brought to bear in order to expedite this work; and if, and when, the penalty clause under Clause 4 of the agreement will come into operation?

The postition is as stated in the latter part of my reply to the hon. and gallant junior Member for Southampton on the 15th of June. The greater part of the area covered by the Jaffa Electric Company's concession is already supplied from a fuel power station at Tel Aviv. The company have been required to submit a scheme within a period expiring in two months' time to supply the remainder of the area, which comprises the town of Petach Tikvah and the surrounding area, either from the existing fuel station or from a hydro-electric station constructed in accordance with the original plan. The Palestine Government will, no doubt, consider the propriety of bringing the penalty clause into operation if the scheme is not submitted within the time limit specified above.

In view of the fact that we are so short of trade, will the right hon. Gentleman make every effort to ensure that this concession is carried out under the terms of the agreement?

Yes, that is being done.