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Concessions in Mandatory Palestine facts for kids

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Falastin newspaper front page 2 November 1932 on the anniversary of the Balfour Declaration
Front page of the Arabic newspaper Falastin on the 15th anniversary of the Balfour Declaration, 2 November 1932. This cartoon shows the Jordan River Concession (electricity project) and the Dead Sea Concession (salt mining).

The Concessions in Mandatory Palestine were special agreements that gave certain companies the sole right to control important businesses in Mandatory Palestine. Think of a concession as a special permission or a monopoly. This meant only one company could operate a specific service or use a certain resource, like generating electricity or mining minerals, in a particular area. These agreements were made during the time when Palestine was under British rule, known as the British Mandate.

What Were Concessions?

A concession is like getting an exclusive license. It means a company had the only right to do something, like build power plants or extract salt from the Dead Sea. No other company was allowed to do the same thing in that area. This was often done to encourage big projects that needed a lot of money to start. The British government, which was in charge of Palestine at the time, granted these special rights.

Why Were Concessions Granted?

Concessions were given out to help develop the economy of Mandatory Palestine. The idea was that by giving a company a monopoly, they would be more likely to invest a lot of money and effort into big projects. These projects included providing electricity, managing water resources, or extracting valuable minerals. These were important for building up the region's infrastructure and industries.

Key Concessions and Their Impact

In 1938, a group called the Woodhead Commission listed many of these important concessions. They covered vital services and resources.

Electricity and Water Concessions

One of the most important types of concessions involved electricity and water. These were essential for homes, farms, and new industries.

The Jordan River Concession

This concession was given to the Palestine Electric Corporation, led by Pinhas Rutenberg. This company was allowed to use the water from the Jordan River to create electricity. They built the First Jordan Hydro-Electric Power House, which was a major step in bringing modern power to the region. This project helped light up cities and power factories.

The Dead Sea Concession

The Dead Sea is famous for its unique minerals, like potash and bromine. The Dead Sea Concession gave Moshe Novomeysky's Palestine Potash Company the exclusive right to extract these minerals. This was a big industrial project that turned the Dead Sea's resources into valuable products.

Other Water-Related Concessions

  • The Jerusalem Electric and Public Service Corporation: This company provided electricity to the Jerusalem area. It was first run by Euripides Mavrommatis and later sold to a British company called Balfour Beatty.
  • The Auja Concession: This also involved the Palestine Electric Corporation, allowing them to use water from the Yarkon River (also known as the Auja River) for power.
  • Lake Huleh Drainage: This concession was about draining Lake Huleh and the nearby marshes. The goal was to turn swampy land into farmland. This project was eventually taken over by the Palestine Land Development Company.

Oil Transport Concessions

As the world started to rely more on oil, transporting it safely became very important.

  • Transit of Mineral Oils through Palestine and an Oil Refinery at Haifa: This concession allowed the Anglo-Iranian Oil Company to transport oil through Palestine and build an oil refinery in Haifa. An oil refinery processes crude oil into useful products like gasoline.
  • Transit of Mineral Oils through Palestine: The Iraq Petroleum Company also had a concession to move oil through Palestine. This was part of a larger pipeline system that brought oil from Iraq to the Mediterranean Sea.
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