“The Woodhead Commission of 1938 (e.g. the Partition Commission of 1938) possibilities of partition, confirmed the conclusions of the Royal (Peel) Commission that, with the existing standard of cultivation and capital resources of the fellaheen, the land in the hill districts of Palestine is already congested. They recommended that the greatest caution should be exercised in regulating the transfer of Arab land to Jews in the extensive areas which under their proposals would be excluded from the Jewish and Arab States and would be retained under mandatory control.
Quite apart from the obligations of his Majesty’s Government under Article 6 of the Mandate, and looking at the question merely from the practical point of view, if land sales remain unrestricted there is likely to arise a ‘landless Arab’ problem of such dimensions that it will be extremely difficult to find any solution to it. Nothing is more likely to contribute to the possibility of renewed bitterness between Arabs and Jews, and to further violent disorders, than the existence of a considerable landless Arab population, and in fact, some restrictions on land sales are essential if good government in Palestine is to be established.”
Source: Palestine Land Transfers Regulations February 28, 1940