German Reparations and the Metamorphosis of Relations between Israeli and American Jewish Leaders

Friction characterised relations between leaders of Israel and diaspora communities in the early years of the Jewish state. Prime minister David Ben-Gurion condemned diaspora life and called for an ingathering of exiles. Jacob Blaustein, president of the American Jewish Committee, and other communal leaders objected to the description of Jews as a nation and of those living outside Israel as exiles. The tension reached a boiling point over who would present Jewish claims against Germany for crimes perpetrated by the Third Reich. Dr. Nahum Goldmann convened a meeting of diaspora organizations to discuss the question of direct negotiations with West Germany. Abba Eban, Israeli ambassador to the United States, explained to the participants the primacy of the Israeli claim "both in moral and practical terms" and opposed the presentation of a separate claim. Rejection of this position prompted the creation of an eponymous entity, the Congress on Material Jewish Claims against Germany.

The signing of the Luxembourg Agreement on September 10, 1952 marked a turning-point in relations between leaders of the fledgling state and American Jewish communities. Israel ended its involvement in the campaign for Holocaust-related compensation. Politicians and diplomats took it for granted that the state had no role to play in seeking compensation for losses incurred by individuals. Victim associations applied to the Israeli Foreign Ministry for intervention on their behalf but all requests were turned down. Documents from the Ministry reiterated the official line that seeking compensation for victims was in the sole domain of the Claims Conference or other diaspora organizations. An examination of the impact of the Claims Conference on Israeli policy fills a gap in research on the adjustment of American-dominated diaspora activism to the new reality of operations alongside a state.