The Transfer Agreement (24 page)

On April 13, 1933, Arlosoroff met with a worried Rutenberg. To succeed, his liquidation company would need thousands of middle-class Jews to purchase small blocks of noncontrolling stock. Rutenberg feared that the rival plan for a Zionist refugee fund would ruin everything. People would not buy shares in a liquidation company that wasn't expected to return dividends for ten years and donate additional money to a relief fund as well. One or the other, probably both, would be unsuccessful. Rutenberg said he would rather see his liquidation company delayed or canceled than launched on a path of failure.
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The next day, April 14, Arlosoroff and Weizmann met at an experimental agricultural station near Tel Aviv with High Commissioner Wauchope and Sir Phillip Cunliffe-Lister, the British colonial secretary, who had just arrived from London. Cunliffe-Lister was the cabinet officer with direct purview over England's colonies and the Palestine Mandate. Together, Wauchope and Cunliffe-Lister possessed the power to change radically the course of Jewish nationalism in Palestine. Cunliffe-Lister had already talked to Rutenberg in London about transplanting German Jews to Palestine via a liquidation company. Essentially, the colonial secretary approved.
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But the many thousands, perhaps hundreds of thousands, of German Jews could not possibly dwell in the tiny enclaves that comprised Jewish Palestine. In 1933, only about 4 percent of Palestine's 10,000 square miles was in Jewish possession. Most of this land was concentrated in enclaves around Jaffa-Tel Aviv, the northern Mediterranean coast, Haifa and the Galilee. Large tracts were reserved for cultivation. About 20 percent of Palestine was Arab-owned. The Mandate government owned the remaining 70 percent, and half of that was uninhabitable desert. So more room would clearly be needed.
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As the two Zionists and two British officials spoke, their attention turned to the swampy Huleh Valley in northeast Galilee. All previous Zionist efforts to purchase this land had been stymied by either government obstruction or radical Arab pressure on the Arab landowners. But Cunliffe-Lister and Wauchope could guide this swampland from Arab ownership to Jewish control. And by meeting's end, they appeared so inclined.
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Most of Arlosoroff's meetings with Rutenberg and with the British were still either secret or arranged by Arlosoroff working alone. And although they were conducted more or less under the color of the Jewish Agency, most Agency officers learned of the episodes only after the fact. No wonder that a few hours after the secret April 14 rendezvous with Weizmann, Wauchope, and Cunliffe-Lister, Arlosoroff's maverick actions were finally confronted. Arlosoroff was briefing the Executive Committee about his meeting the night before, in which Rutenberg threatened to abandon his liquidation company because it could not succeed alongside the fund-raising campaign. Arlosoroff explained that London would have to decide which operation should be executed, the fund or the company. Ludwig Pinner, one of the German Zionists attending the session, objected to the continuing delays. "The initiative in this matter came from us," Pinner said. "We intended to begin work immediately . . . but as organized Zionists we turned to the Jewish Agency Executive. Then a 'battle for authority' began."
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Emanuel Neumann then spoke up angrily. "I cannot express an opinion on these issues, since activities are being undertaken without my knowledge. This is a scandal which I cannot simply ignore. I hear everywhere, even in the street, of important matters which are unknown to me. Meetings are called without us. I will not participate in any discussion until all members of the Executive are provided with full information on every matter." Neumann then ticked off the sources of his irritation. ''Among the things which I heard outside were: discussions with the colonial secretary, the Huleh, discussions with Rutenberg, and so on. It will perhaps turn out that there are other matters which are not known to us."
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The exchange closed with Neumann insisting that London be consulted for authority to undertake any special action—this, a direct attempt to control Arlosoroff.
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But Arlosoroff would not be stopped.

The next day, April I5, Arlosoroff contacted Rutenberg and Weizmann to help decide the next step. Rutenberg conceded that the donations fund took priority over the liquidation company because each lost day meant lost revenues. Moreover, non-Zionist fund-raising was an even greater threat to Zionism.
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On April
I
6,
the Jewish Agency gathered again. Arlosoroff admitted that he had taken the initiative once more by formally inviting Weizmann to head
up the fund-raising operation. Arlosoroff defended his action, declaring, "We are neglecting a historical opportunity and betraying our mission. . . . I warn the Executive. A delay for internal reasons will backfire on us." The Executive members realized that Arlosoroff now was personally shaping the highest level of Zionist politics.
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Neumann was furious: "We did not decide to ask Dr. Weizmann to head the appeal. We decided to send a telegram to London to inform our colleagues there of our views and ask their opinion.
If
someone has approached Weizmann on this matter, it was done prematurely and without authorization. . . . One cannot behave in this manner. . . . There is Rutenberg, and there is Weizmann. They negotiate. Negotiations are undertaken with them. We have no place in this as an Executive. . . . They arrange matters and come to us afterwards . . . to vote and decide. Is this an Executive or a fiction?"

Continuing in anger, Neumann declared, "Here we learn that an agreement has already been completed between Weizmann and Rutenberg. In that case—what are we doing here! I do not even know exactly what Rutenberg's plan or what Weizmann's intentions are. . . . Things have gone too far. . . . I therefore inform you that: A, I am resigning from the [special German crisis] committee; B, I retract my vote on our earlier decision concerning the [fund-raising] operation to be headed by Weizmann, as I did not then know of Rutenberg's proposal; C, I agreed then to Dr. Arlosoroff traveling to Germany and London—at the moment I see no point in this, and I accordingly retract my agreement."
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The others attending, including Arlosoroff, tried to reason with Neumann, stressing that all the bickering was trivial compared to the crisis in Germany, and the crisis Zionism would suffer unless it quickly interposed itself in the solution. Dr. Senator tried to convince Neumann to continue working on the German problem. Neumann answered, "I cannot retract my resignation." Senator then announced, "In that case, I also resign."
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The meeting abruptly ended, with Zionism's response to Hitler still undecided. After Arlosoroff left the room, Neumann instructed the secretary to cable London in code all that had transpired.
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Energies would now be spent not on relieving Jewish agony in Germany, but in finding some way to prove who was boss in the Zionist movement.

Yet Arlosoroff's momentum was not stalled. Two days later, April
18,
Arlosoroff organized a day trip to the Huleh for Weizmann, Cunliffe-Lister, and Wauchope. Stopping at a point near Tiberias and the Sea of Galilee, the men talked and came to a meeting of the minds. Cunliffe-Lister stated that Britain was in principle in favor of Jews taking over the Huleh. He would even recommend to the British cabinet that Transjordan lands be used for Jewish emigration as well—subject to three stipulations: First, if Jews moved to Transjordan, an extra military unit would be needed for the area, and its £30,000 annual expense would have to be borne by the Jews. Second,
the Zionist press must refrain from any mention of extending the Jewish National Home into Transjordan. Third, the Jewish Agency would be super-ceded by a specially chartered company to carry out the settlement.
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During the conference, Colonial Secretary Cunliffe-Lister did most of the talking, while High Commissioner Wauchope tried not to commit himself. However, at one point Wauchope asked Weizmann directly when the transfer would begin. Weizmann replied, "It must either happen in the next year or two, or would have to be put off for ten years."
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Rutenberg's liquidation company now became all the more pivotal, as did Arlosoroff's personal negotiation with the Third Reich as the official representative of the Zionist movement. The Jews of Germany would have to be steered to Palestine. But without genuine authority, Arlosoroff was certain the Nazis would not cooperate. And even then, he was unsure just how far the Reich would go.
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So when Arlosoroff discovered Neumann's telegram 620
,
sent in code to the London Executive in an attempt to discredit Arlosoroff's authority and block his visit to Berlin, Arlosoroff dispatched his own cable:

"SPECIAL 622: OUR TELEGRAM 620 DISPATCHED . . . WITHOUT MY/SENATOR CONSENT OR KNOWLEDGE STOP . . . INFORMAL CONVERSATION PURPOSE COORDINATE RUTENBERG SCHEME NOT ILLEGAL BUT VERY HELPFUL . . . DELAY ACTION OWING TO INTERNAL CONTROVERSY . . . ENDANGERING PALESTINE PARAMOUNT POSITION IN EMERGENCY ACTION AND RESULTING MORAL LOSS ZIONISTS."
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Arlosorotrs main goal now was to wrap up Jewish Agency business quickly and leave for Berlin. In yet another Executive session, held on April 19, Arlosoroff declared that approval for this trip had already been granted and that "Mr. Neumann's retraction of his vote does not change the situation as far as I am concerned. I am therefore prepared to travel." Neumann, still suspicious, suggested that the matter at least be tabled until the next session. Arlosoroff replied, "I do not agree to a delay." Finally, Senator, who knew why Arlosoroff needed to visit Berlin, broke in and said, "There is already a decision, and if there will be a demand [from London] to change it . . . then we will discuss it." Arlosoroff added decisively, "I shall prepare to travel."
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On April
22
,
Cunliffe-Lister held a secret meeting with two of the most important Arab personalities in Palestine. One was the emir, who owned much of the Huleh lands; the other was the Mufti of Jerusalem, the virulently anti-Jewish leader who by intimidation, bribery, and family influence kept the fires of violence and confrontation in Palestine stoked. After Arlosoroff learned of the meeting, his outlook toward an immediate binational arrangement dimmed. Apparently, the mufti had maintained his usual rejectionism. This convinced Arlosoroff that the path to binational coexistence would be a spiral that first settled Jews on land surrounding their existing enclaves and only later expanded to the Huleh. In the meantime, despite difficulties, settle
ment in the Transjordan would be necessary for the coming waves of German Jews.
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On April
23,
just a few days before Arlosoroff was to leave for Berlin, one last Jewish Agency session was convened. In the background, the pauperization of the German Jews was clearly accelerating. Disenfranchisement not obligated by government decree was implemented by popular fanaticism.
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What's more, Jewish Agency leaders were convinced that if Hitler succeeded, the crisis in Germany would be reenacted in Austria, internationalized Danzig, and perhaps even Rumania.
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They were intensely aware that their response now would be noted by anti-Semitic regimes elsewhere in Europe.

At the April 23 Agency meeting, Rutenberg was called in to explain personally his liquidation company, now provisionally named the Palestine Development Corporation. As Rutenberg explained his concept, it became clear that his liquidation company would in fact absorb most of the Zionist institutions, including the Jewish Agency, the Jewish National Fund, and the Palestine Foundation Fund. Arlosoroff hoped that the company's shares would be split fifty-fifty between Zionist institutions and private investors, but the precise percentages couldn't be guaranteed.
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The concept was so mammoth that some Executive members could not comprehend exactly how it would work. Others were uncertain where the Zionist movement would find the money to purchase 50 percent of the company's shares. The questions and debate continued until Arlosoroff angrily chastised: "Some fifty days have been lost since March tenth, and each day is worth one hundred thousand pounds [in Jewish donations going to other sources]. We have already lost half the company's capital. We cannot continue to talk."
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But the gentlemen then disagreed over whether Rutenberg's company should be purely commercial, syphoning German Jewish wealth to Palestine via business ventures, or whether the company should actually oversee resettlement. Senator was against the company engaging in any relief activities. Rutenberg was shocked. "If I had wanted to found a commercial company," Rutenberg complained, "there would have been no need for me to come here. The operation is intended to be
both
commercial and ethical."
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However, after an acrimonious debate, the Executive unanimously endorsed Rutenberg's company as a "purely commercial" venture engaging not in the transfer of people, but in the transfer of money. This new approach to solving the German Jewish question stressed not political negotiations with the Reich for relief, but commercial negotiations with the Reich for business.
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There was no time to lose. Arlosoroff asked German Consul Heinrich Wolff for a letter of introduction to the German government so he could initiate discussions of emigration and property transfer. Wolff was happy to comply, preparing a letter to the Berlin Foreign Ministry that glowingly described Arlosoroff as an important Zionist official who had been instrumental in good relations between the Jewish Agency and Germany.
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