Jerusalem, July 16.
The present unrest at Safed has led to the outbreak of a new wave of terrorism, Early yesterday afternoon a bomb was thrown near one of the Mosques in Jerusalem just as a large number of Arabs were leaving the Mosque. Six Arabs were killed on the spot and about forty others were more or less seriously wounded, the condition of some being critical, Police and soldiers immediately blocked a number of streets in order to facilitate the search for the perpetrators, but no trace of the culprits has- been discovered.
The news of this new bomb outrage caused tremendous excitement in the whole city and necessitated a more rigorous application of control.
New incidents also occurred at Safed and British troops had to make use of their fire arms. One Arab was killed and a British policeman wounded, A state of emergency has now also been proclaimed at Safed Trans-Ocean, "But I must say that my overwhelming feeling is one of repulsion and resentment that humanity is really engaged in mortgaging so immense a part of its resources in preparing for a possible Armageddon when so much might be done with those resources if only a solution of difficulties could be found.
"This country has got resources in character, courage and history which will see us through."
Referring to the fact that the course of world trade had been unfavourable since he presented his Budget, the Chancellor said, that, in making the best estimate they could on every ground, they must not exaggerate their disappointment.
There were, he thought, abundant reasons for concluding that the present situation had no" resemblance to the situation before the great depression in 1931. Conditions in countries which produced primary commodities were very different and much improved from what they then were.
In Great Britain, Sir John Simon stated, "we have secured a far better and far surer share of our home market than we have ever done since 1931. We are now'much less dependent than we were on fluctuations in Arab Shops Close in Protest:
Jerusalem, July 16, Considerable tension prevails in Jerusalem following the explosion of a bomb in a crowded bazaar in the Old City yesterday, resulting in eleven persons being killed and fifteen injured, All Arab shops have closed as a protest against the outrage, while many Jewish shops, fearing an attack, have followed suit, The authorities have tightened up precautions against disorders, includ-ti ing the reimposition of curfew at six o'clock in the-afternoon.
Armed police were summoned yesterday to, shepherd home, bus loads 4 of Jewish residents. A The outrage has deeply shocked all communities whose hopes of a gradual return to normalcy ha rudely shattered, The explosion occurred while the bazaar was densely packed by Arab peasants who had come to town for Friday devotions in the Mosque.
In contrast with the tension in Jerusalem, the situation in Haifa is more normal, with the majority of shops open again. cits police are stil i investigating the which is believed to be dae lorallment of a goods train yester
sabotage—Reuter. foreign trade, and are entirely free from the obligation of pursuing a deflationary policy.'—Reuter,
Text read from the printed page and cleaned; old type leaves the occasional error.