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             On December 11, 
			1917, General Edmund Allenby, the commander-in-chief of the British 
			forces in the Middle East, officially accepted the surrender of 
			Jerusalem.  While the battle between the British and the Turks still 
			raged a few kilometers north of the city, the military governor of 
			Jerusalem quickly enacted the first regulations to safeguard the 
			historic character of Jerusalem. Six months later, the first town 
			plan was authorized and,  with the establishment of the British 
			Mandate in 1920, the first master plan for Jerusalem was prepared. 
			The plan established Jerusalem as a modern capital, according to the 
			grand tradition of British town planning. The British municipal 
			concept was to build two parkways in Jerusalem that would provide 
			rapid access from one side of the city to the other, while 
			simultaneously creating a special, enjoyable vista for the city. 
			
			  
			 
			To the city’s west, the “Western Parkway” was paved along the Valley 
			of the Cross. Along the ridge immediately to the west of the Old 
			City, the British paved the “Inner Parkway.” During the Mandate 
			period, the “Inner Parkway” was called Julian’s Way in honor of the 
			fourth-century Roman emperor who had allowed Jews to return to and 
			settle in the city. After the creation of the State of Israel, the 
			street was renamed King David Street. 
			In 1928, the 
			Palestine Hotels Company purchased four acres, at the highest point 
			along Julian’s Way, from the Greek Orthodox Church for $150,000. The 
			Palestine Hotels Company planned to build the best and grandest 
			hotel in Jerusalem on this site.  
			From Cairo to 
			Jerusalem 
			Elie Nissim Mosseri 
			established the Palestine Hotels Company in Egypt in the 1920s. The 
			Mosseri family had arrived in Egypt in the beginning of the 
			nineteenth century at the invitation of Mohammed Ali, the Bosnian 
			governor of Egypt, who had turned Egypt into an independent kingdom. 
			Mohammed Ali and his successors encouraged businessmen, soldiers, 
			professionals, and scientists to settle in Egypt in order to 
			modernize the country. With the opening of the Suez Canal in 1869, 
			the stream of foreigners settling in Egypt mushroomed. They included 
			many Jewish families. By the end of the nineteenth century, Cairo 
			and Alexandria had relatively large Jewish communities. 
			The Mosseri family 
			had come to Egypt from Livorno, Italy, and its members had 
			established themselves as merchants, bankers, and professionals. 
			Agronomist Victor Mosseri discovered a treatment for a widespread 
			cotton disease that saved Egypt’s main cash crop. Elie Mosseri, 
			another member of the family, reorganized the Egyptian cement 
			company. Joseph Mosseri went into the movie-making business; he 
			established what would become the largest movie-making company in 
			the Arab world. But the family’s most important asset, and the 
			source of its wealth, was Banque Mosseri, one of the biggest 
			Egyptian financial institutions. 
			By the 1920s, when 
			the Palestine Hotels Company was established, the family had reached 
			the zenith of its prosperity. Elie Mosseri’s 11 siblings lived in 
			impressive mansions in Cairo’s upper-class neighborhoods of Zamalek 
			and Garden City, which were on the banks of the Nile. Most of the 
			mansions serve today as museums, libraries, and embassies. 
			Elie Mosseri 
			married three times. His wedding to Laura Felix Suares, a scion of 
			one of the richest Egyptian Jewish families, was the most dazzling 
			social event of the year. All of Egypt’s high society showed up, 
			from the royal family to the composer Camille Saint-Saens. The 
			wedding took place in the Great Synagogue of Cairo, which had been 
			built with the help of the Mosseri family. Egypt’s chief rabbi 
			officiated at the ceremony. Elie Mosseri’s first wife died before 
			her time. A short while later, Simonette, one of their two 
			daughters, also passed away.  
			Mosseri’s second 
			wife was Georgette Hirsch, the widow of Alphonse Kahn, the famous 
			French banker and founder of the Parisian department store, Gallery 
			Lafayette. Georgette died shortly after her second marriage, leaving 
			him with a Parisian inheritance.  
			Mosseri’s third 
			wife, Helene Polymeris, was an Egyptian society lady from a Greek 
			Alexandrian family. “Her beauty was as great as her fortune was 
			small,” the wags of the time declared. Helene Mosseri was the 
			closest friend of young King Farouk, the last king of Egypt, and his 
			confidant. The king called her “the beautiful Helene” in his 
			memoirs. After Nasser deposed Farouk in 1952, Helene committed 
			suicide. Elie Mosseri had died 12 years earlier on June 10, 1940. 
			The Mosseri family, 
			especially Elie Mosseri, was very active in the hotel business. The 
			Egyptian Hotels Company, which was owned by the family bank, managed 
			the most luxurious hotels in Egypt, including the Shepheard in 
			Cairo, the Mena House at the foot of the Pyramids, the Grand Hotel 
			in Helwan, and the Continental Savoy. Another of his companies, the 
			Upper Egypt Hotels Company, owned and managed the Winter Palace in 
			Luxor and the Cataract Hotel in Aswan, the two most important 
			locations, together with the Mena House, on the Egyptian grand tour. 
			As visitors to 
			Mandatory Palestine began to increase, especially business people, 
			Zionist delegations, and British military and government personnel, 
			it was only natural that the Mosseri family would realize that a 
			grand, luxury hotel would be needed in Jerusalem. In 1921, Elie 
			Mosseri founded the Palestine Hotels Company. Shares in the company 
			were sold to Jewish families in Egypt and the United States, as well 
			as to Swiss financiers. The shareholders included the Rothschild 
			family. 
			Ancient Semitic 
			Style 
			The well-known 
			Swiss hotel architect, Emil Vogt, was chosen to design the building. 
			Vogt was known for his fairy-tale hotels in St. Moritz and Lucerne 
			and recently had renovated the famous Grand Bretagne in Athens. J.P. 
			Hoffschmid, the hotel’s Swiss interior designer, was told to “evoke, 
			by reminiscence, the ancient Semitic style and the ambience of the 
			glorious period of King David.”  
			The hotel was built 
			during the 1929 riots, during which the Jewish community of Hebron 
			was massacred and Jews in Jerusalem, Safed, and other parts of 
			mandatory Palestine were murdered by Arab gangs. Of the 240 
			construction workers, 210 were Jewish. They included 60 
			stonecutters, 25 masons, 60 carpenters, 25 plumbers, five 
			electricians, and other skilled workers, all of whom worked 
			side-by-side with their 30 Arab colleagues. But the struggle between 
			Jews and Arabs in Palestine would engulf the hotel as soon as it 
			opened its doors. Both Jewish and Arab national institutions sent 
			representatives to the hotel to investigate the number of Jews and 
			Arabs employed there. They not only monitored the numbers, but also 
			which jobs were filled by Jews and which by Arabs and who was 
			promoted and who was fired. The issue was reflected in the 
			newspapers of the day, as well as in pamphlets calling for boycotts, 
			struggles, and reports by each side about alleged discrimination 
			against its members discovered at the hotel. 
			The Expected 
			Standard 
			In December 1930, 
			the Grand Hotel of Palestine, as the King David was called in the 
			press, opened for a trial run with 200 rooms and 60 bathrooms. A 
			month later, on January 20, 1931, the hotel was officially 
			inaugurated. Five days after the official opening, Marcus Issa and 
			George Tshar, scions of prestigious Arab families in Jerusalem, put 
			an advertisement in the Arab newspaper Palestine calling on the 
			wealthy Arab families of Jerusalem not to hold parties and dinners 
			at the King David because they believed the hotel was a Zionist plot 
			to ruin the city’s Arab hotel owners.  
			The Jews, on the 
			other hand, complained that the hotel employed mainly Arabs. A few 
			years after the hotel opened, the Jewish Agency examined the “issue 
			of Jewish employment at the King David Hotel.” A Jewish Agency 
			official was sent to talk to the hotel’s Swiss manager, “Comrade 
			Ziller,” after a stormy meeting with “representatives of the Jewish 
			workers of the hotel.” Regarding the question of “firing of Jewish 
			workers from the hotel,” Ziller said he “had fired no Jewish 
			employees.” Comments by the union representatives made it clear that 
			the only employees laid off were a Greek night watchman and a Jewish 
			chambermaid. 
			Ziller didn’t 
			understand what the ruckus was all about. “The workers here don’t 
			have the professional standards needed for a first-class 
			European-style hotel,” he explained. “In order to keep up the 
			standards, the hotel management brings in a professional team of 
			hotel personnel from Switzerland every year.” 
			In 1936, the Mufti 
			of Jerusalem, Haj Amin el Husseini, proclaimed the beginning of the 
			Arab Revolt against the Jews and British with the goal of stopping 
			Jewish immigration to Palestine. This was the beginning of three 
			years of terror perpetuated by Arabs in the cities and along the 
			main roads of the country.  
			While the Arab 
			Revolt was raging, the Palestine Hotels Company decided to upgrade 
			the hotel. Professional hoteliers from Europe were brought in to 
			fill all the main positions in the hotel’s management. 100 Sudanese 
			were brought in to serve as waiters and doormen. They dressed in 
			wide baggy pants, embroidered shirts, small jackets, and red fez.
			 
			Around the same 
			time, it was decided to upgrade the hotel’s cuisine. The result was 
			the La Regence restaurant, which by the end of the British Mandate 
			had become the central meeting point of Jerusalem society, the 
			British administration, visiting dignitaries, and world travelers. 
			By the end of the 1930s, while the clouds of war were gathering over 
			Europe, the King David had become an important stop on the travel 
			routes of the British Empire.  
			Each April and May, 
			the wealthy and royal families of Egypt and the wealthy families 
			from the Palestine coast arrived for the summer. The families stayed 
			at the hotel for six months, until the beginning of October, when 
			Cairo’s burning heat  and sultry coastal humidity abated. The men 
			conducted their business in Cairo during the week and returned to 
			the hotel by train for the weekends. After a new road across 
			northern Sinai was built in the late 1930s, it quickly became 
			fashionable to drive between Cairo and Jerusalem; the journey took 
			10 hours and was the fastest way to get from one city to the other. 
			September 1939, the 
			month that World War II broke out, was a busy month for the hotel. 
			“The weekend at the King David has been a very busy one with many 
			officers of the army and air force coming and going, both those 
			already in Jerusalem, and those from the outlying districts,” 
			reported the hotel’s log for the week of September 4, 1939, four 
			days after Germany had invaded Poland. The same week, “Capt. 
			Collingwood, who has been transferred to Egypt, gave a farewell 
			dinner at the King David. The room, lit with soft candlelight, 
			looked very beautiful; the dining table was charmingly arranged with 
			primrose-colored marigolds. The Winter Garden was furnished as a 
			drawing room and used for serving cocktails before dinner and coffee 
			after.” The Saturday dinner dance that week was “well patronized and 
			the dance music of the Palestine Police Band was well received and 
			happily encored.” 
			On September 24, 
			the King David’s daily log noted, “A new landmark was established in 
			Palestine and a new leaf turned in the history of the King David 
			when the Lydda Airport Restaurant was opened, with the hotel in 
			charge of the catering department.” The new restaurant quickly 
			turned into one of the busiest meeting places in the center of the 
			country. In-flight meals were not yet served on planes and so many 
			airlines scheduled stopovers in Lydda on flights between the Far 
			East and Europe so that passengers could enjoy lunch. 
			In October 1939, 
			the British Army expropriated 40 bedrooms and 17 offices on the 
			uppermost story of the hotel and turned them into British military 
			headquarters in Palestine. In November, the civilian authorities of 
			Palestine expropriated 45 rooms for the secretariat of the British 
			Mandate. The hotel was left with only 62 bedrooms and 24 halls for 
			its own use. The hotel was now the center of British administration 
			in Palestine. British troops guarded the building; machine gun 
			emplacements were set up at the entrance to the hotel. 
			World War II 
			brought economic prosperity to Jerusalem. Supply and production 
			centers for the British Army were set up in Palestine to serve the 
			thousands of British troops stationed in the Middle East. Many 
			different units arrived in Jerusalem: Free Polish and Free French 
			troops, Gurkhas, New Zealanders, Australians, and many more. Exiled 
			emperors, kings, princes, and dukes also found refuge in Jerusalem. 
			Many of them lived in the hotel for extended periods. 
			When the news of 
			the Nazi atrocities against the Jews in Europe reached the city, the 
			Jewish underground movements and the British came to a cease-fire 
			agreement. The British stamped out the Arab Revolt in 1939; the 
			Mufti and other radical Arab leaders, who had voiced support for the 
			Nazis, were deported. Jerusalem now managed to have a few years of 
			quiet. The King David finally began to prosper.  
			New Year’s Eve, 
			1940, was celebrated with the hotel’s usual pomp. “In spite of the 
			war-time atmosphere, a record crowd gathered at the King David,” the 
			hotel log reported. “The banquet hall was decorated to look its very 
			smartest. Music was provided by Rosler’s Band, a new band that 
			blended very well with the hotel’s Saturday night dinner dances. The 
			dance band of the Black Watch, the British Army’s elite Scottish 
			unit, also played. Dancing went on until just before midnight, when 
			the guests gathered in the main lobby of the hotel. 
			A hush fell over 
			the guests. Every heart beat with hope for the New Year. Every voice 
			prayed that the New Year would bring some kind of solution. 
			Precisely at midnight, the bay windows’ silvery satin curtains were 
			drawn aside to show two Black Watch Pipers standing on the balcony. 
			As the strokes of 12 began, lights carried by soldiers behind them 
			spelled out ‘Happy New Year.’ The pipers raised their pipes, and 
			their music started, and precisely as the New Year began, the date 
			‘January 1, 1940,’ was lit up, and ‘Auld Lang Syne’ was played. When 
			the song was over, the pipers broke out into a brilliant sword 
			dance, the bands picked up, and the dancing continued until the 
			early hours of the morning.” 
			In late March 1941, 
			the log recorded the arrival of Emir Abdullah, soon to be King 
			Abdullah of Jordan. At the same time, the hotel’s daily log noted 
			the visit of Prince Abdel Monheim, the Egyptian regent. The emir 
			visited various sites around the city and hosted dinners for 
			Palestinian notables. 
			In the first week 
			of June 1941, the hotel log recorded that a severe hamsin (heat 
			wave) had struck the city. On June 4, the log noted the death of 
			deposed Kaiser Wilhelm II. On June 8, it reported that Free French 
			forces, together with British, Australian, and Indian troops, had 
			invaded Syria. That same week Mr. Morton, the correspondent for the 
			Daily Telegraph, hosted Prince Peter and Princess Irene of Greece 
			for lunch, and Major Prince Aly Khan, the son of the Aga Khan, at 
			the hotel. 
			On June 1, 1941, 
			15,000 British troops were evacuated from Crete. The next day, 
			American forces occupied Iceland. Shavuot fell that same week and 
			“many visitors came to Jerusalem.” The King David was fully 
			occupied. A week later, the hotel log states, “Many guests arrived 
			from Haifa and Tel Aviv to avoid the nights of the full moon, when 
			there were numerous air raids.” 
			At the end of July, 
			Frya Stark, the British traveler and confidant of Lawrence of Arabia 
			and King Feisal, made a few visits to the hotel. Her travels through 
			the Arabian Desert with Abdullah and members of the Hussein family 
			made her a celebrity in the salons of Cairo, Delhi, and London. 
			Halil al-Assad and Emir Abd al-Razek of Syria were honored guests of 
			the hotel that week, as well as W. Averell Harriman, the personal 
			representative of U.S. President Franklin Roosevelt. 
			The end of World 
			War II brought a period of rejoicing to the British Empire. But 
			peace in Jerusalem was short-lived. In July 1946, the Jewish 
			underground movements resumed their battle against the British 
			“White Paper,” the policy restricting Jewish immigration to 
			Palestine. In one night, the Haganah blew up all the bridges leading 
			in and out of Palestine. The British retaliated with a massive 
			search and arrest operation – called “Operation Agatha” by the 
			British and “Black Sabbath” by the Yishuv – in which most of the 
			leaders of the Jewish community were arrested. The Irgun decided to 
			retaliate. 
			The Explosion 
			On July 22, 1946, 
			Irgun members, disguised as Arabs, placed two milk urns filled with 
			350 kilograms of explosives in the La Regence kitchen, under the 
			southern wing of the King David Hotel. After lighting time-delayed 
			fuses, the Irgun called the secretariat, stating that a bomb had 
			been planted and was set to go off in 30 minutes, and that the hotel 
			should be evacuated immediately. Meanwhile, the Irgun exploded two 
			diversionary bombs outside the hotel. Although the secretariat 
			received the warning, confusion reigned about whether it was 
			referring to the explosions outside the hotel, or if this was a 
			false alarm. The hotel was not evacuated. At 12:37, a huge explosion 
			shook Jerusalem and the whole southern wing of the hotel collapsed.
			 
			For two days, 
			British Army engineers struggled to rescue survivors. 91 people 
			died: 28 British, 41 Arabs, 17 Jews, and five guests of the hotel. 
			The Jewish community condemned the attack, which worsened relations 
			between the Haganah and the Irgun, and between the Yishuv and the 
			British administration.  
			The world was 
			outraged. The British turned Jerusalem into a fortified city of 
			barbed wire, checkpoints, and security areas. British military and 
			administrative officials traveled in convoys. The cease-fire in 
			Jerusalem was over. 
			A Divided City 
			 On May 15, 1948, 
			the Union Jack was lowered from the roof of the King David. British 
			High Commissioner Sir Alan Cunningham had left Jerusalem the day 
			before. 
			As fighting between 
			Jews and Arabs broke out in the city, the hotel was turned into the 
			Red Cross headquarters. Max Hamburger, the hotel’s manager, 
			succeeded in reaching an agreement between the Israel Defense Forces 
			(IDF) and the Jordanian Arab Legion to declare the King David a 
			demilitarized zone. Neither side managed to keep the agreement.
			 
			With the hotel once 
			again a battle zone, the Red Cross evacuated the building and the 
			hotel was taken over by the United Nations. The U.N. flag was 
			hoisted up the hotel’s flagpole, but this did not make an impression 
			on the warring sides and snipers continued to fire at the hotel. 
			Following the U.N. evacuation of the King David, it became an 
			Israeli military position and a target for the Arab forces’ mortars 
			and cannons. 
			Once the fighting 
			ended, the hotel tried to resume operation. But the divided city was 
			not the world capital that it had been during the mandate period, 
			even if it now was the capital of the small, new Jewish state. The 
			wealthy residents, who had fled Jerusalem during the war, were 
			replaced by new immigrants, many of them penniless.  
			The Palestine 
			Hotels Company did not see a bright future for the King David. All 
			it hoped for was that the King David would cover its operating costs 
			and maybe collect the debt that the British government still owed 
			it. 
			A Dream Redeemed 
			Yekutiel Federmann 
			was born in 1914 in Kamnitz, Germany. Xiel, as he was called by all, 
			and his brother Samuel (Samo), two years his junior, were ardent 
			Zionists. Xiel was active in the Jewish youth movement Habonim. On 
			January 30, 1933, the Federmann family’s four bakeries and coffee 
			shops were among the first Jewish businesses to be attacked by local 
			members of the Nazi party, who were celebrating their victory in the 
			elections to the Reichstag. Xiel watched helplessly as his father 
			was dragged into the street and humiliated by SS thugs.  
			These events only 
			made Xiel increase his Zionist activities. He became one of the 
			central figures in the Zionist movement Hahalutz, which prepared its 
			members to immigrate to Palestine. In addition to his official 
			activities in the movement, Xiel also was active in the clandestine 
			anti-Nazi Zionist movement. This organization’s members focused on 
			preparing hiding places and escape routes into Austria and 
			Czechoslovakia. But on Kristallnacht, November 9, 1938, the Gestapo 
			surprised the organization and managed to capture them, one by one, 
			with the aid of detailed lists it had obtained. Xiel and another 
			member were the only ones who managed to escape. With the aid of 
			forged travel documents, he reached London. 
			In London, Xiel was 
			put in change of the local Youth Aliyah branch, replacing Teddy 
			Kollek. His main responsibility was getting Jewish youngsters out of 
			Germany to centers in London, where they were prepared to immigrate 
			to Palestine. He repeatedly traveled to continental Europe and made 
			his way through Nazi Germany, using forged documents. With the help 
			of the good connections that he had developed with government 
			officials in London, he managed to get immigration certificates to 
			Palestine for the youngsters that he managed to get out of Germany 
			In March 1940, 
			Yekutiel and Bella Federmann made Aliyah. Determined to fight the 
			Nazis, Xiel prepared to enlist in the Royal Air Force (RAF). But the 
			British authorities were unimpressed with the pilot’s license that 
			he presented and were not too keen on accepting Jewish immigrants to 
			Palestine into the RAF. After spending a month in the Halutzim group 
			that was planning to establish a kibbutz in the Carmel Mountains, 
			Bella and Xiel realized that communal life was not for them. They 
			rented a small apartment in Haifa and with two partners established 
			a café called the Yardenia.  
			The café was a 
			favorite haunt of British officers and NCOs. Xiel’s friendly nature 
			made him a favorite of the customers, including high-ranking 
			officers in the British Navy.  
			In June 1942, Field 
			Marshal Rommel’s armored forces in North Africa won a decisive 
			victory over the British forces in Libya. A week later, Tobruk fell 
			to the Germans and 30,000 British soldiers were captured. The 
			British Army retreated to El Alamien in Egypt, about 100 kilometers 
			west of Alexandria, and in range of air attack. The German advance 
			forced the British to move their main supply center from Alexandria 
			to Haifa; the plan to do so was a major military secret. One Friday 
			afternoon, Xiel found a briefcase that a British supply officer had 
			left at the café. The briefcase contained the detailed plans for the 
			secret move to Haifa. 
			When the terrified 
			officer returned to reclaim his briefcase, Xiel told him that he had 
			been forced to look inside the briefcase in order to ascertain its 
			owner. While doing that, he explained to the officer, he had 
			inadvertently seen the plan. Xiel offered his services to the supply 
			officer. The officer was ready to put Xiel to the test. “I need 
			20,000 pairs of shorts,” the officer told him. Xiel quickly arranged 
			for the Moller and Ata textile works to supply them and was soon 
			taking orders for more clothing items. In a short time, Xiel managed 
			to arrange to supply the main items the British Army needed. He 
			rented a number of large warehouses and supplied the British Army 
			with everything from shoelaces to food to camping equipment. 
			British Army trucks 
			delivered Xiel’s supplies to the army bases. This opened the way for 
			a lucrative commercial enterprise. Most of the supplies were 
			transported by truck to bases west of Alexandria. At the time, 
			Alexandria’s harbor was blockaded and its merchants were stuck with 
			goods that could not be shipped out of the city. Xiel bought the 
			goods at a discount and transported them to Haifa in the returning 
			trucks, which would have been empty otherwise.  
			In late 1943, Xiel 
			was summoned to Jerusalem to meet with a British admiral. The 
			meeting was at the King David Hotel. As he entered the hotel, his 
			breath was taken away. He was enchanted by the architecture, the 
			splendor of the building, and the beauty of its garden. “I would 
			like to own this place one day,” he thought. 
			Samuel (Samo) 
			Federmann had remained in Kamnitz with his parents in order to help 
			them run the family business under the Nazi regime. In 1936, his 
			father, David Federmann, as the head of the family, was summoned to 
			the local Gestapo headquarters. A Gestapo officer, who had been a 
			long-time customer of Federmann’s, advised him, “Sell what you can 
			and get out as quickly as possible.” 
			David Federmann 
			followed this advice. He moved the family to Antwerp, Belgium, where 
			his eldest son, Shaya, had settled. From Antwerp, the family moved 
			to Brussels, where they established a successful Viennese pastry 
			shop. In May 1940, the Germans invaded Belgium and the Federmann 
			family had to flee once again. At the Belgian-French border, the 
			family discovered that all of the roads to Paris were blocked. The 
			family then tried to travel to Paris via Dunkirk, arriving in that 
			area just as the British Army was being evacuated. Finally, the 
			family managed to reach Paris. 
			The German conquest 
			of Paris uprooted them again. This time they fled to Spain. In 
			October 1940, Samo was arrested and imprisoned in northern Spain, 
			along with 4,000 others. The Spaniards were locking up every refugee 
			of army age entering Spain. After he made the difficult adjustment 
			to prison camp life, Samo opened a clandestine camp bakery. In 1942, 
			Jewish diamond merchants from Belgium began to arrive in the camp. 
			Many of them turned to Samo, who they knew from his days in 
			Brussels, and asked him to sell the diamonds that they had brought 
			with them in order to make their stay at the camp a little more 
			bearable. In a short time, Samo became the “diamond king” of the 
			camp. More importantly, he now had at his disposal the means to 
			organize his release. 
			In December 1943, 
			Samo and three partners rented a fishing boat, loaded it with 751 
			Jewish refugees, and set sail for Palestine. In January 1944, the 
			boat arrived at Haifa. Jewish Agency representatives welcomed the 
			immigrants and then the British hauled them off to the detention 
			camp at Atlit. Xiel, the chief supplier of the British Navy, soon 
			managed to arrange for his younger brother to be released. 
			The Dan in Tel 
			Aviv  
			When World War II 
			ended, the business of supplying the British Army dried up. The 
			brothers had to find a new source of income. Setting their eyes on 
			the hotel business, the Federmanns rented and renovated the 
			venerable Kaete Dan Pension on Hayarkon Street in Tel Aviv. 
			 
			On November 29, 
			1947, the day that the General Assembly of the United Nations passed 
			the Partition Plan, the legal basis for the creation of the State of 
			Israel, a Jewish delegation from Miami was staying at the Kaete Dan 
			hotel. The delegation had not been able to return to the U.S. as it 
			had planned because Arab attacks on the roads had made it impossible 
			to reach the airport. After the U.N. decision was announced, the 
			delegation members – Max Horowitz, Rabbi Irving Lerman, and Mrs. 
			Zelog – watched the outbreak of joy and dancing in the streets of 
			Tel Aviv in amazement. While the events in the streets continued, 
			leaders of Aliyah Bet, the arm of the Haganah responsible for 
			clandestine immigration to Israel, paid a visit to the hotel to seek 
			Xiel’s help. They told him that a ship full of Jewish immigrants was 
			waiting just offshore of Tel Aviv, in full view of a British Army 
			camp. The ship’s captain refused to allow the passengers to be taken 
			off the ship and smuggled quietly to shore under the cover of night 
			until he received $5,000, which he said had been promised to him 
			upon arrival. 
			Xiel did not have 
			the money in the hotel and the banks were closed at that hour. He 
			decided to ask his guests from Miami to lend him the money until the 
			banks opened in the morning. The head of the delegation agreed, on 
			condition that the delegation be allowed to participate in bringing 
			the immigrants to shore. 
			At 9 o’clock the 
			next morning, Xiel returned the loan, as promised. This chance 
			encounter on that fateful night planted a seed that blossomed a year 
			later when Xiel was sent to Belgium in order to procure arms for the 
			IDF. As he stepped out of the elevator in the Belgian hotel, he ran 
			into Horowitz and two of his business partners. Xiel presented his 
			views on the development of tourism in Israel to them. He explained 
			that Israel needs hotels of a standard that can accommodate visitors 
			from abroad. The Miami businessmen decided to join him as investors 
			in a venture to create a luxury hotel in Tel Aviv. 
			The path to the 
			establishment of the hotel was still long. Xiel set out to persuade 
			government leaders and officials to allow him to import the 
			materials needed to construct the hotel without charging him the 
			huge tariffs imposed on imports in the first years of the state’s 
			existence. Finance Ministry officials were unimpressed with Xiel’s 
			vision. They did not see Israel as a place for tourists. Instead, 
			they only saw a young country with hundreds of thousands of new 
			immigrants living in tents and temporary housing, plus an acute 
			shortage in basic food products. In their eyes, this was not the 
			time for luxury hotels, but for basics.  
			However, following 
			an investment of four million dollars in new housing by the Miami 
			businessmen, the Israeli government officials were ready to allow 
			the construction of a 120-room luxury hotel. 
			The new hotel was 
			inaugurated in November 1953. Government ministers and officials, 
			who previously had mostly voiced their objection to the hotel, 
			fought for an invitation to the opening of the “first Hebrew luxury 
			hotel after 2,000 years of exile.” 
			Read full 
			article in: ERETZ Magazine, Feb. 2007 (Issue 107)  |