The Transfer Agreement: The Untold Story of the Secret Pact Between the Nazi Third Reich and Jewish Palestine

By Edwin Black

Macmillan, 1984, 430 pp.

Reviewed by Fritz Stern

Summer 1984Published on 

Hitler’s early anti-Jewish measures provoked worldwide efforts at a boycott of German goods, a measure that would have injured a still precarious economy. Jews orchestrated these efforts at a boycott, but hesitated over whether it would inflame or moderate German anti-Semitism. Meanwhile Zionist leadership and the Third Reich agreed on arrangements whereby German Jews could emigrate to Palestine under somewhat more favorable financial conditions and whereby German trade with Palestinian Jewry would increase. In turn, majority Zionists (as against the Revisionists) backed away from the boycott.

The author documents the divisions within Jewry, insisting that the Zionists put their cause-German emigration to Palestine-ahead of the possible protection of Jews via more militant economic measures. Although shockingly deficient in his grasp of German developments, Black explicates the several Jewish positions, and seems to argue both that an early boycott might have succeeded and that “the Zionists were the coldest realists-perhaps the only realists-of the period.”

From Wikipedia, the free encyclopedia

The Haavara Agreement (Hebrew: הֶסְכֵּם הַעֲבָרָה‎ Translit.: heskem haavara Translated: “transfer agreement”) was an agreement between Nazi Germany and Zionist German Jews 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 in 1933–1939.[1]

The agreement enabled Jews fleeing persecution under the new Nazi regime to transfer some portion of their assets to British Mandatory Palestine.[2] Emigrants sold their assets in Germany to pay for essential goods (manufactured in Germany) to be shipped to Mandatory Palestine.[3][4] The agreement was controversial and was criticised by many Jewish leaders both within the Zionist movement (such as the Revisionist Zionist leader Ze’ev Jabotinsky) and outside it, as well as by members of both the Nazi Party and the German public.[4] 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.[4][5]


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.[6] 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).[7] In the following months, the Nazis used a process termed Gleichschaltung (co-ordination) to consolidate power.[8] By June 1933, virtually the only organisations not under the control of the Nazi party were the army and the churches.[9]

Within the Nazi movement, a variety of (increasingly radical) “solutions” to the “Jewish Question” were proposed both before and after 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.[10] 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.

Meanwhile, in Mandatory Palestine, a growing Jewish population (174,610 in 1931, rising to 384,078 in 1936[11]) was acquiring land and developing the structures of a future Jewish state despite opposition from the Arab population.

Hanotea company:

Transfer agreement used by the Palästina Treuhandstelle (Palestine Trustee Office[12]), established specifically to assist Jews fleeing the Nazi regime to recover some portion of the assets they had been forced to surrender when they fled Nazi Germany.

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.[13] In a deal worked out 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 be shipped to Palestine, and the immigrants would be granted a house or citrus plantation by the company to the same value.[14] Hanotea’s director, Sam Cohen, represented the company in direct negotiation with the Reich Economics Ministry beginning in March 1933.[15] In May 1933 Hanotea applied for permission to transfer capital from Germany to Palestine.[15] This pilot arrangement appeared to be operating successfully,[citation needed] and so paved the way for the later Haavara Agreement.

The transfer agreement:


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,


— Example of the certificate issued by Haavara to Jews emigrating to Palestine

The Haavara (Transfer) Agreement, negotiated by Eliezer Hoofein, director of the Anglo-Palestine Bank,[16] was agreed to by the Reich Economics Ministry in 1933, and continued, with declining German government support,[17] until it was wound up in 1939.[18] Under the agreement, Jews emigrating from Germany could use their assets to purchase German-manufactured goods for export, thus salvaging their personal assets during emigration. The agreement provided a substantial export market for German factories in British-ruled Palestine. Between November 1933, and 31 December 1937, 77,800,000 Reichmarks, or $22,500,000, (values in 1938 currency) worth of goods were exported to Jewish businesses in Palestine under the program.[17] By the time the program ended with the start of World War II, the total had risen to 105,000,000 marks (about $35,000,000, 1939 values).[18]

Emigrants with capital of £1,000, (about $5,000 in 1930s currency value) could move to Palestine in spite of severe British restrictions on Jewish immigration under an immigrant investor program similar to the modern EB-5 visa. Under the Transfer Agreement, about 39% of an emigrant’s funds were given to Jewish communal economic development projects, leaving individuals with about 43% of the funds.[19][20]

The Haavara Agreement was thought by some German circles to be a possible way to solve the “Jewish problem.” The head of the Middle Eastern division of the foreign ministry, the anti-Nazi politician Werner Otto von Hentig, supported the policy of settling Jews in Palestine. Hentig believed that if the Jewish population was concentrated in a single foreign entity, then foreign diplomatic policy and containment of the Jews would become easier.[21] Hitler’s own support of the Haavara Agreement was unclear and varied throughout the 1930s. Initially, Hitler seemed indifferent to the economic details of the plan, but he supported it in the period from September 1937 to 1939.[22].

After the German invasion of Poland in September 1939 the program was ended.[18]


The agreement was controversial both within the Nazi party and in the Zionist movement. As historian Edwin Black put it, “The Transfer Agreement tore the Jewish world apart, turning leader against leader, threatening rebellion and even assassination.”[23] Opposition came in particular from the mainstream US leadership of the World Zionist Congress, in particular Abba Hillel Silver and American Jewish Congress president Rabbi Stephen Wise.[24] Wise and other leaders of the Anti-Nazi boycott of 1933 argued against the agreement, narrowly failing to persuade the Nineteenth Zionist Congress in August 1935 to vote against it.[23]

The right-wing Revisionist Zionists and their leader Vladimir Jabotinsky were even more vocal in their opposition.[25] The Revisionist newspaper in Palestine, Hazit Haam published a sharp denunciation of those involved in the agreement as “betrayers”, and shortly afterwards one of the negotiators, Haim Arlosoroff was assassinated.[23]

See also:
  1. ^ “Haavara”
  2. ^ Krüger, C. G (2009). The English Historical Review 124 (510). Oxford University Press: 1208–10.
  3. ^ Arab-Israeli Wars: 60 Years of Conflict, Ha AvaraABC-CLIOaccessed 7 May 2013.
  4. Jump up to:a b c Yf’aat Weiss, The Transfer Agreement and the Boycott Movement: A Jewish Dilemma on the Eve of the HolocaustYad Vashem Shoah Resource Center, accessed 28 April 2016.
  5. ^ Francis R. Nicosia The Third Reich & the Palestine question, pp. 41-49.
  6. ^ Evans, Richard J. (2005). The Third Reich in Power. New York: Penguin. pp. 293, 302. ISBN 978-0-14-303790-3.
  7. ^ Shirer, William L. (1960). The Rise and Fall of the Third Reich. New York: Simon & Schuster. pp. 183–184. ISBN 978-0-671-62420-0.
  8. ^ McNab, Chris (2009). The Third Reich. Amber Books. p. 14. ISBN 978-1-906626-51-8.
  9. ^ Evans, Richard J. (2005). The Third Reich in Power. New York: Penguin. p. 14. ISBN 978-0-14-303790-3.
  10. ^ Harran, Marilyn J. (2000). The Holocaust Chronicles: A History in Words and Pictures. Lincolnwood, IL: Publications International. Full text
  11. ^ “Jewish & Non-Jewish Population of Israel/Palestine (1517-Present)”
  12. ^ Jewish Responses to Persecution: 1933-1938, Jürgen MatthäusMark Roseman, Rowman & Littlefield, 2010
  13. ^ Nahum Karlinsky California Dreaming: Ideology, Society, and Technology in the Citrus Industry of Palestine, 1890-1939 SUNY Press, pp.76-8, 118, 218
  14. ^ Rafael N. Rosenzweig The Economic Consequences of Zionism, New York: BRILL, 1989, pp.82-83
  15. Jump up to:a b Francis R. Nicosia: The third Reich & the Palestine question, p. 39 ff.
  16. ^ Leni Yahil, The Holocaust: The Fate of European Jewry, 1932-1945, Oxford: Oxford University Press, 1991, p.101
  17. Jump up to:a b “Haavara Pact Extended for Only 3 Months; Seen Losing Reich’s Support”. JTA. 8 March 1938. Retrieved 1 May 2016.
  18. Jump up to:a b c “Haavara Winds Up Reich-palestine Transfer Operations; Handled $35,000,000 in 6 Years”Jewish Telegraphic Agency. 8 September 1939. Retrieved 1 May 2016.
  19. ^ “Reich Migrants to Palestine Get Back 42% of Funds in Cash”. JTA. 25 May 1936. Retrieved 2 May 2016.
  20. ^ Heritage: Civilization and the Jews (PBS)
  21. ^ Francis R. Nicosia The Third Reich & the Palestine question, pp. 132–133.
  22. ^ Francis R. Nicosia: The Third Reich & the Palestine question, pp. 140, 142.
  23. Jump up to:a b c Edwin Black “COULD WE HAVE STOPPED HITLER? Could American Jews have acted sooner and done more to save European” Reform Judaism Fall 1999
  24. ^ Aaron Berman Nazism, the Jews and American Zionism, 1933-1988, Detroit: Wayne State University Press, 1992, p.39; Jennifer Ring, Political Consequences of Thinking, The: Gender and Judaism in the Work of Hannah Arendt, New York: SUNY Press, 1 Feb 2012, pp.59-63
  25. ^ Francis R. Nicosia Zionism and Anti-Semitism in Nazi Germany Cambridge University Press, 5 May 2008, p.99
Further reading:
  • Avraham BarkaiGerman Interests in the Haavara-Transfer Agreement 1933–1939, Yearbook of the Leo Baeck Institute 35; 1990, S. 245–266
  • Yehuda BauerJews for sale? Nazi-Jewish Negotiations, 1933-1945, Yale University Press, New Haven, CT, 1996. ISBN 978-0300068528
  • Edwin BlackThe Transfer Agreement: The Dramatic Story of the Pact Between the Third Reich and Jewish Palestine, Brookline Books, 1999.
  • Werner Feilchenfeld, Dolf Michaelis, Ludwig Pinner: Haavara-Transfer nach Palästina und Einwanderung deutscher Juden 1933–1939, Tübingen, 1972
  • Tom SegevThe Seventh Million: Israelis and the Holocaust (2000, ISBN 0-8050-6660-8), especially p. 31ff
  • David Yisraeli: “The Third Reich and the Transfer Agreement”, in: Journal of Contemporary History 6 (1972), S. 129–148
  • R. Melka: “Nazi Germany and the Palestine Question”, Middle Eastern Studies. Vol. 5 No. 3 (Oct., 1969). pp 221–233.
  • Hava Eshkoli-Wagman: “Yishuv Zionism: Its Attitude to Nazism and the Third Reich Reconsidered”, Modern Judaism. Vol. 19 No. 1 (Feb., 1999). pp 21–40.
  • Klaus Poleken: “The Secret Contacts: Zionism and Nazi Germany 1933–1941”. Journal of Palestine Studies. Vol. 5 No. 3/4 (Spring–Summer 1976). pp 54–82.
External links:

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