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Haavara Agreement

The Haavara Agreement (Hebrew: הֶסְכֵּם הַעֲבָרָה, romanizedheskem haavara, lit.'transfer agreement') was an agreement between Nazi Germany and Zionist organizations signed on 25 August 1933. The agreement was finalized after three months of talks by the Zionist Federation of Germany, the Anglo-Palestine Bank (under the directive of the Jewish Agency) and the economic authorities of Nazi Germany. It was a major factor in making possible the migration of approximately 60,000 German Jews to Palestine between 1933 and 1939.

The agreement enabled Jews fleeing persecution under the new Nazi regime to transfer some portion of their assets to British Mandatory Palestine. Emigrants sold their assets in Germany to pay for essential goods (manufactured in Germany) to be shipped to Mandatory Palestine. The agreement was controversial and was criticised by Revisionist Zionist leader Ze'ev Jabotinsky and by some non-Zionist Jews, as well as by members of both the Nazi Party and the German public. For German Jews, the agreement offered a way to leave an increasingly hostile environment in Germany; for the Yishuv, the Jewish community in Palestine, it offered access to both immigrant labour and economic support; for the Germans it facilitated the emigration of German Jews while breaking the anti-Nazi boycott of 1933, which had mass support among European and American Jews and was thought by the German state to be a potential threat to the German economy.

Although the Nazi Party won the greatest share of the popular vote in the two Reichstag general elections of 1932, they did not have a majority, so Hitler led a short-lived coalition government formed by the Nazis and the German National People's Party. Under pressure from politicians, industrialists and others, President Paul von Hindenburg appointed Hitler as Chancellor of Germany on 30 January 1933. This event is known as the Machtergreifung (seizure of power). In the following months, the Nazis used a process termed Gleichschaltung (roughly 'bringing into line') to consolidate power. By June 1933, virtually the only organisations not under the control of the Nazi party were the army and the churches.

Within the Nazi movement, a variety of increasingly radical "solutions" to the "Jewish Question" were proposed both before and while the Nazi party was in government, including expulsion and the encouragement of voluntary emigration. Widespread civil persecution of German Jews began as soon as the Nazis were in power. For example, on 1 April, the Nazis organized a nationwide boycott of Jewish-owned businesses in Germany; under the Law for the Restoration of the Professional Civil Service, which was implemented on 7 April, Jews were excluded from the civil service; on 25 April, quotas were imposed on the number of Jews in schools and universities. Jews outside Germany responded to these persecutions with a boycott of German goods, which appeared to some Nazis to threaten the Reich.

Meanwhile, in Mandatory Palestine, a growing Jewish population (174,610 in 1931, rising to 384,078 in 1936 and 600,000 in 1948) was acquiring land and developing the structures of a future Jewish state despite conflicting sentiments within the population of Mandatory Palestine.

Hanotea (הַנּוֹטֵעַ 'the Planter') was a citrus planting company based in Netanya and established in 1929 by long-established Jewish settlers in Palestine involved in the Benei Binyamin movement. In an arrangement with the Reich Economics Ministry, the blocked German bank accounts of prospective immigrants would be unblocked and funds from them used by Hanotea to buy agricultural German goods; these goods, along with the immigrants, would then go to Palestine, and the immigrants would be granted a house or citrus plantation by the company of the same value. Hanotea's director, Sam Cohen, represented the company in direct negotiation with the Reich Economics Ministry beginning in March 1933. In May 1933 Hanotea applied for permission to transfer capital from Germany to Palestine. This pilot arrangement appeared to be operating successfully,[citation needed] and so paved the way for the later Haavara Agreement.

CERTIFICATE

The Trust and Transfer Office "Haavara" Ltd. places at the disposal of the Banks in Palestine amounts in Reichmarks which have been put at its disposal by the Jewish immigrants from Germany. The Banks avail themselves of these amounts in Reichmarks in order to make payments on behalf of Palestinian merchants for goods imported by them from Germany. The merchants pay in the value of the goods to the Banks and the "Haavara" Ltd. pays the countervalue to the Jewish immigrants from Germany. To the same extent that local merchants will make use of this arrangement, the import of German goods will serve to withdraw Jewish capital from Germany.
The Trust and Transfer Office,

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