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The current flag (that we are using in Wikipidia) is the Ensign flag, the flag had been use only for maritime purposes.
According to article Flag of Mandatory Palestine quote: "During the British Mandate over Palestine between 1920 and 1948, the de facto flag was the Union Jack or Union Flag of the United Kingdom, but several localised flags existed for Mandate government departments and government officials. The only Palestine-specific flag not restricted to official government use was the Palestine ensign (red with the Union Flag in the canton, and a white circle on the fly with the mandate's name inside it), which was flown by ships registered in the British Mandate territory from 1927 to 1948. This flag had an extremely limited use on land and was not embraced by either the Arabs or the Jews of the Palestine mandate territory".