Jerusalem, Dec. 16.
The situation in the coastal regions of Palestine was notably improved today and traffic is being resumed. In the mountainous hinterland, terrousts still remi 4 The rebels' "General has published a manifesto containing a reply to the speech made by Mr. Mal-calm MacDonald, who dealt with the Holy Land problem in the House of Commons.
This manifesto declares that an "Arab-Jewish entente is impossible. The Arabs refuse to consider the Jews as a legal party "We will fight Britain's forces, and. we are decided to die rather than retreat one step, until the Arab nation of Palestine receives recognition of its rights."
British Army detachments today arrested several suspect terrorists in various regions where searches were being carried oùt A decree passed on May 2, this year, provided for the construction of 120,000 tons of war vessels. This figure, is exceptionally high when compared to the average annual construction figure of 43,000 tons.
New credits' for coastal defences are to be doubled in the 1939 Budget compared to the sums allocated for this purpose in 1938, Credits put aside for naval aviation will be raised by nineteen per cent.—Havas.
Text read from the printed page and cleaned; old type leaves the occasional error.