The Arab reaction Although some factions of the Palestinian Arab leadership initially supported partition, a wide spectrum of Palestinian Arab society rejected the plan. Palestinians were shocked both by the declaration their land would be divided, and that they themselves would be denied statehood (but only a union with Transjordan), while the Jewish state, extending over a third of the country, would absorb the whole of the Galilee, where an overwhelming percentage of the land was owned by Arabs and Jews had only a slender presence. In compensation, the Arabs were offered valuable areas to the east of Jordan and the southern portion of the
Beisan sub-district where irrigation would have been possible. For the Arabs, the plan envisaged giving Zionists the best land, with 82% of Palestine's principal export, citrus fruit, consigned to Jewish control. The idea of transfer of population met strong opposition. a rift which led the Nashashibis to leave the
Arab Higher Committee (AHC). Amin al-Husseini was persuaded by the other Arab leaders to testify to the Commission. The Plan was also repudiated at the
Bloudan Conference convened in Syria on 8 September, where parties from all over the Arab world rejected both the partition and establishment of a Jewish state in the Palestine Mandate.
The Jewish reaction On 20 August 1937, the Twentieth Zionist Congress asserted that, at the time of the
Balfour Declaration, it was understood that the Jewish National Home was to be established in the whole of historic Palestine, including
Trans-Jordan, and that inherent in the Declaration was the possibility of the evolution of Palestine into a Jewish State. While some factions at the Congress supported the Peel Report, arguing that later the borders could be adjusted, others opposed the proposal because the Jewish State would be too small. The Congress decided to reject the specific borders recommended by the Peel Commission, but empowered its executive to negotiate a more favorable plan for a Jewish State in Palestine. In the wake of the Peel Commission the Jewish Agency set up committees to begin planning for the state. At the time, it had already created a complete administrative apparatus amounting to "a Government existing side by side with the Mandatory Government."
University of Arizona professor Charles D. Smith suggests that, "Weizmann and Ben-Gurion did not feel they had to be bound by the borders proposed [by the Peel Commission]. These could be considered temporary boundaries to be expanded in the future." The two main Jewish leaders,
Chaim Weizmann and Ben-Gurion, had convinced the
Zionist Congress to approve equivocally the Peel recommendations as a basis for more negotiation. ==Aftermath==