asked the Secretary of State for the Colonies what was the cost of the damage resulting from the oil installation fire at Haifa caused by terrorist activity; and what steps he is taking to raise the money in Palestine.

No accurate estimate of the cost is available, but the Shell Oil Company, whose installations were those damaged in this terrorist outrage, has through its representatives in Palestine expressed the opinion that the ultimate cost of restoration, including the value of the oil stocks destroyed, will be not less than £400,000. No financial liability for damage done by terrorists is accepted by the Palestine Government. The question of possible steps to recover the cost of this damage is still under consideration.

Is the right hon. Gentleman aware that the best means of restraining terrorists is by means of a communal fine and insistence on its being paid?

The whole of this problem is now under consideration.