The Hope-Simpson Report
Upon the recommendation of the Shaw Commission, the British authorities conducted an investigation into the possibilities for future immigration to and settlement of Palestine. The investigation was headed by Sir John Hope-Simpson, who spent a relatively short amount of time in Palestine reviewing the situation.
Hope-Simpson's main concern was that there was not sufficient land to support continued immigration. According to his report, Arab farmers were suffering from severe economic difficulties. Many were tenant farmers who owed large amounts of money and lacked the means to ensure successful agricultural endeavors. Others were simply unemployed. The report indicated that the Jewish policy of hiring only Jews was responsible for the deplorable conditions in which the Arabs found themselves.
Due to these conditions, Hope-Simpson recommended the cessation of Jewish immigration. Only after new agricultural methods would be introduced in Palestine, would room be made for an additional number of immigrants.
In response, Jewish leaders in the yishuv argued that Hope-Simpson had ignored the capacity for growth in the industrial sector. Stimulating economic growth through increased demand would most likely benefit the Arab economy as well. Hope-Simpson disagreed, seeing the future of Palestine in agriculture, not in industry. Jews also claimed that since they had made a principle of using Jewish labor only, the cessation of immigration would in fact have no effect on Arab unemployment.
Source: The Jewish Agency for Israel and The World Zionist Organization.