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THE TRANSFER AGREEMENT

by Barry Chamish

JERUSALEM - It has been called, along with Ben Hecht's Perfidy, the
most controversial book about Israel ever written. Unlike Perfidy,
The Transfer Agreement by Edwin Black (MacMillan, 1985) never had an
audience. It was taken off the shelves quickly and surreptitiously
and is almost impossible to find. I thank David Perkins for traveling
to Washington and making copies at the Library of Congress.

      What Black's book painstakingly proves is that in 1933, while
the rest of World Jewry was organizing an economic boycott of the new
Nazi regime in Germany in the hope of breaking it before it could
mount the Holocaust, the Mapai (Labour Party) faction of the Zionist
Organization based in Jerusalem decided to make Nazi Germany
Palestine's chief trading partner.

      The vehicle for trade was The Transfer Agreement. The Nazis and Labour Zionists 
had one very important thing in common: The Nazis wanted Germany ridded of Jews and 
the socialist Zionists did too, so long as they emi
grated to Eretz Yisrael. To accommodate such a transfer of Jews, an agreement was 
arranged whereby each Jew wishing to leave Germany for Palestine would have to use his 
capital to purchase German goods there. Thus, while
world Jewry was busy fighting Nazi Germany economically, the Mapai Zionists were 
saving Germany from financial ruin.

      In short, the Labour Zionists assured the survival of the Nazis. To do so, it 
was essential that their rivals, the Revisionist Zionists (Likud) were eliminated from 
the power structure of the impending state of Isra
el. The murder of Labour Zionist leader Chaim Arlozoroff, who was a chief negotiator 
of the Transfer Agreement, was the means to totally discredit the opposition and get 
on with the task of doing business with the Nazis a
nd in doing so, create a state in the socialist image.

      I admit, Black does not paint things quite so black and white. However, I'm 
certain most readers would be left with this impression. Black does conclude, "Could 
the boycott really have overturned the Hitler regime?
I believe the answer is that for a short period of time, the anti-Nazi boycott did 
have an excellent chance of toppling the Third Reich. The boycott's greatest momentum 
occurred just after April 1, 1933. Had the world's J
ewish and Zionist organizations unified behind the boycott at that point, they 
probably could have mobilized much of the Christian population and many governments 
into joining...In their first few months of power, the Naz
is would not have been able to maintain control."

      However, a veritable who's who of early Zionist heroes sabotaged the boycott. In 
Part One of my review, I will follow the story of the secret agreement in Black's own 
words. While I will not slow down the narrative
with explanations of every Jewish leader and organization, those fighting the boycott 
allied themselves with the Labour Zionists of Palestine. Then, instead of negotiating 
with the Jew-hating Nazis, the same Labour Zionis
ts exploited a political murder to promote their pacts with the Jew killers of the PLO 
by eliminating Revisionist (Likud) objections through deliberate, wrongful blame.

The Transfer Agreement, pp 107- Locker advised the Jewish Agency in Jerusalem that for 
tactical reasons, Zionists in all countries should avoid participating in the struggle 
against Hitler. Locker feared that open critici
sm of Hitler would precipitate crackdowns on German Zionism... Zionists were seeking 
d�tente with an enemy to achieve Jewish nationalism...But the American Jewish 
Committee's antagonism to anti-Nazi activity defied even t
heir own definition of Jewish defense.

pp 127- By linking the purchase of German goods to the settling of German Jews in 
Palestine...the Zionist movement would be obliged not only to refrain from and oppose 
any boycott, they would be obliged to aggressively sp
onsor German exports.

pp 134/135- The German government felt certain it had triggered the breakup of the 
boycott because the Zionist movement would now be in the German export business...The 
Jews of the world would now have to choose between f
ighting Hitler and building Palestine...the plan was not a rescue or relief project. 
If it was, the Zionists would have labored for an agreement for Jews fleeing Germany 
without regard to where they sought refuge.

pp 201- Yet at a Mid-July rally held at the height on London's anti-Nazi agitation, 
Nahum Sokolow, in his capacity as Federation president, advised an anti-Nazi rally to 
forgo boycott plans. And Chaim Weizmann and other k
ey Zionist figures repeatedly advised the Deputies to persist in their non-boycott 
policy.

pp 293- Chaim Weizmann, a General Zionist, boycotted the session and requested his 
name be removed from the Congress speaker list altogether because the Revisionists had 
been allowed to participate.

pp 301- The same afternoon as Revisionist leader Jabotinsky was exhorting his 
followers to postpone their political grievances in favor of the war against Nazism, 
Labor leader David Ben Gurion, speaking to the Mapai strat
egy conference, demanded that his followers do the opposite. The most important task 
of the movement, Ben Gurion declared, was to cleanse the movement of Revisionism and 
extend Mapai's political borders to cover the entir
e Zionist Organization.

pp 306- Dr. Ruppin saw to it that most drafts of his speech deleted any reference to 
the Transfer Agreement. Dr. Ruppin apparently preferred history to believe he had 
never even mentioned the subject.

pp 308- The Revisionist argument would never be heard. Motzkin announced that after 
the resolutions were presented, there would be no debate, this by the decision of the 
Mapai-dominated presidium...Nahum Goldmann urged th
at the Congress show unity by considering only the Mapai-based resolution.

pp 310/311- Holders of German bonds, loans and investments around the world had been 
implored to forgo the material gain of trafficking in Nazi wares...But now the Zionist 
Organization was willing to betray the boycott in
 exchange for the same economic stimulus many in the world were being urged to 
relinquish.

pp 361- As such, leadership of the worldwide boycott was being consigned to Zionist 
officials and Zionist organizations. This was the fate of the international boycott 
nurtured by the Jews of the world. The boycott would
be led by the leaders who, in fact, opposed it.

pp 373- By 1935, Palestine's need to sell German merchandise to offset Jewish deposits 
in transfer accounts became greater than anyone expected. So the Zionist Organization 
established another transfer corporation (which)
 operated a regional sales network in Iraq, Egypt, Syria and elsewhere in the region. 
Mid- east markets were opened for a vast array of German exports, from Volkswagens to 
municipal bridge works.

pp 375- By 1936, the Jewish population had doubled...The town of Haifa had grown into 
a bustling German immigrant city. Palestine was on its way to a Jewish majority, on 
its way to Jewish statehood.

pp 382- The haunting question is: Was the continuing economic relationship with 
Germany an indispensable factor in the creation of the State of Israel? The answer to 
that is yes.

   Thus ends Black's disturbing book. Labor Zionism got its way: it created a state in 
its image. And the cost was only 6 million dead. The same state could have been 
created by the Revisionists had they been allowed to f
ight. And the price in dead would have been high but, in retrospect, far more 
reasonable.

---

AUTHOR'S POST SCRIPT - "TRANSFER AGREEMENT II"

  I received numerous objections to the above part of my review of Edwin Black's book, 
"The Transfer Agreement." Two arguments were repeated. First, who is Edwin Black and 
why should we trust him? Mr. Black was a longtime
 reporter for the Chicago Tribune and the son of Holocaust survivors. His book was 
published by no less than MacMillan and was delayed for many months until its editor, 
Ned Chase was satisfied that every point was proved
conclusively.

  The second objection is just as easy to answer. Numerous correspondents complained 
about dredging up fifty year old history and asked what the point of it is. The point 
is that the mentality of the socialist Zionists ha
s not changed and few Israelis learned the lesson the first time around.

  In 1933, the vast majority of Palestinian Jews showed their righteous anger at the 
Nazis by boycotting German goods. At the same time, the Labor Zionist leadership 
scoffed at majority opinion and conducted secret negoti
ations with Hitler's regime of terror which lead to a wide ranging economic pact.

  In 1993, the vast majority of Israeli Jews showed their righteous anger at the PLO 
by refusing to recognize them as remotely potential diplomatic partners. At the same 
time, the Labor Zionist leadership scoffed at major
ity opinion and conducted secret negotiations with Arafat's regime of terror which led 
to a wide ranging diplomatic pact.

  In 1933, the chief negotiator with the Nazis, Chaim Arlosoroff was murdered and 
though the perpetrators of the deed did not come from the political opposition and the 
Labor Zionist leadership knew it, they exploited the
 murder to push through their immoral pact when objections to it became overwhelming.

  In 1995, the chief negotiator with the PLO, Yitzhak Rabin... finish the previous 
sentence.

  Now let Edwin Black tell the story with some commentary by me intruding on his 
narrative.

 pp 137- (The) first task was to circulate word that the official proposal of Zionism 
was in the hands of Chaim Arlosoroff, head of the Political Department of the Jewish 
Agency..."This leads me to a central question...th
e liquidation of capital and holdings belonging to German Jewish emigrants," 
Arlosoroff explained..."It makes no sense to ignore it or think it can be solved 
without an agreement with the German government."

 pp 148- Chaim Arlosoroff was one of the most provocative thinkers of his day... His 
Jewish friends began to fear and hate him. Arlosoroff was a top Mapai (Labor) leader, 
but the Labor-aligned moderates could hardly conta
in their fury that the prodigy of the Zionist movement was abandoning all Zionist 
discipline. Unilaterally he was formulating and executing policy- bilateral 
breakthroughs with the Arabs and controversial trade-offs with
the Nazis. Arlosoroff was by himself engineering the fate of societies and nations, 
not in theoretical, discreet ways but by one stunning fait accompli after another. He 
was giving away the Promised Land to the Arabs, and
 in doing so giving away the Zionist elections to the Revisionists (Likud). Arlosoroff 
would have to be stopped.

  His enemies among the Jews were convinced there was no greater nemesis. Arlosoroff 
was a special foe of Revisionism. It was Arlosoroff who in late 1931 conceived the 
decree against membership in Jabotinsky's Revisionist
 Union. The calls for his assassination were so commonplace during early 1933 that it 
was rumored Revisionist circles were merely debating whether to kill him before or 
after the Eighteenth Zionist Congress.



pp 150- On June 9, the Palestinian Revisionist newspaper Hazit Haam declared, "At a 
time when the people of Israel in Palestine and abroad are in a defensive war of honor 
against Germany...an official of the Jewish Agency
, (Arlosoroff) suggests not only a cancellation of the boycott but also a promise of a 
market for German imports..." The animosity of the Jewish masses... cast Arlosoroff in 
a deep depression.

 pp 151- Arlosoroff at first refused protection saying, "No Jew would kill me."

 pp 152- At the hospital, the doctors were ill prepared and indecisive...there was no 
surgeon on duty...With the last air in his lungs he turned toward the mayor of Tel 
Aviv and whispered, "Look what they have done to me.
" And then he died.

 pp 157- Quickly the Revisionists emerged as the logical, and to a larger extent, the 
most suitable culprits. Police squads raided the apartments of leading Revisionist 
figures, including Abba Achimeir, the editor of Hazi
t Haam...There they found a Betar activist named Abraham Stavsky...Sima Arlosoroff 
identified Stavsky as the man who held the flashlight and Polish Revisionist Avi 
Rosenblatt as the one who fired the pistol. Some weeks la
ter Achimeir was accused of masterminding the plot.

 Sima Arlosoroff was under tremendous pressure from Mapai leaders to maintain her 
damaging testimony despite doubts. In the months that followed, the murder 
investigation was besieged by bought-and-paid-for Arab confessio
ns, false witnesses, manufactured evidence, bizarre theories, dramatic revelations and 
unanswerable questions. Within a year Rosenblatt and Achimeir were both acquitted due 
to conflicting evidence...Stavsky was finally re
leased on an evidence technicality...Mapai leaders, satisfied that Revisionism was 
implicated- whether or not juridically guilty- would refuse to discuss the case even 
decades later.

 pp 158- Jabotinsky was often held personally responsible. Pamphlets call him "a 
bloodthirsty beast." David Ben Gurion admitted he "was less interested in whether 
Stavsky is the murderer than Jabotinsky." Ben Gurion decla
red that Jabotinsky bore full responsibility because he was Revisionism's 
"Commander,leader and mentor."

 Hostilities continued as Mapai forces hammered away at Revisionism, labeling it a 
Fascist misfit of Zionism, and harassing Jews who supported Jabotinsky. Jabotinsky 
himself was portrayed as the Jewish Hitler, commanding
forces analogous to Nazi Storm Troopers. And yet in truth, it was not the stalwarts of 
Jewish militancy, the Revisionists, who had constructed avenues of commercial and 
political d�tente with the Third Reich. It was the f
orces of Mapai.

   The stage of the Rabin murder was constructed of precisely the same material and 
starred the same actors. Sima Arlosoroff, like Leah Rabin knew more than she was 
permitted to tell and under duress, blamed the political
 opposition. Yigal and Hagai Amir, played Stavsky and Rosenblatt in the latest 
production. Netanyahu made a fine Jabotinsky, Barak, a less convincing Ben Gurion. 
Arafat played a most persuasive Hitler. The props changed b
ut almost no alterations were made in the script.

      Now the scene changes to the 18th Zionist Congress in Prague. Word has leaked 
about the secret Transfer Agreement. Labour Zionism must deflect criticism of their 
immoral pact and to do so, they play the Arlosoroff c
ard just as effectively as today's Labor Party played the Rabin card to keep its 
immoral deals with the PLO on track.

 pp 314- When the session finally resumed, Revisionists were anxious to demand more 
details of the Transfer Agreement. But the proceeding was interrupted by what many 
believed was a staged emergency. Someone dramatically
handed Motzkin a telegram: Motzkin reacted with a look of shock. The presidium passed 
the telegram around and announced this session would be adjourned at once...word 
quickly spread that the cable had come from Palestine.
 It claimed one of the Revisionists on trial for the murder of Arlosoroff had 
confessed to the crime...The next day, the Congress delegates quickly learned the 
"confession cable" was a fake. Still, the false alarm had ser
ved to foreclose debate one more day on the truly pressing issue: The Transfer 
Agreement.

 pp 330/331- Now that representatives of all parties had heard Political Committee 
testimony about at least the superficial aspects of the agreement, the Revisionists 
believed they could appeal to the delegates for a reso
lution of nullification. As expected, the only way Mapai could block this was by 
intensifying their allegations that Revisionists killed Arlosoroff...Hitting hard with 
the murder accusation, Katznelson cried, "Only one of
 us has been slaughtered so far..." This is how it went. Hour after hour, night after 
night. The crisis in Germany was omitted from the agenda. The menace of Hitlerism was 
bypassed. The Nazis must have been smiling.

 pp 334- Mapai had finally succeeded in scheduling a special session devoted 
exclusively to the question of violence... The Actions Committee was then empowered 
"in the most effective manner...to remove from the Zionist O
rganization those elements responsible for violence."

    It's as if whoever plotted the murder of Rabin said, "Let's do
Arlosoroff all over again." Once Rabin was out of the way, all debate
about the Oslo Accord was hushed in precisely the same manner. Anyone
who dared oppose the accord was labeled an assassin and that
justified carrying on with the nefarious agreement.

    To my critics I say, read "The Transfer Agreement" by Edwin
Black. Learn from history. The same mentality of the same people are
at work in our time. We cannot allow them to lead us to slaughter
again.

 Barry Chamish is an Israeli journalist. E-Mail:
[EMAIL PROTECTED]
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