Introduction

The First World War saw the bloodiest and most technologically advanced warfare in

history. The juxtaposition between machine and man pit against one another resembles today a

dystopian future, not so different from those depicted in film and novel. In this battle the war is

not won only by courage or tenacity, but by a cold, heartless mechanism, pumping out

ammunition like fireflies streaming across a bleak, frosted landscape. The style of war changed

dramatically, from frontier driven, steed mounted cavalry, to oil driven, combustion powered

hulks of steel. The types of warfare that

emerge from this conflict set the stage for

the next 100 years and are staggering in

their variety. Chemical warfare,

mechanized warfare, underwater warfare,

and sky warfare; the heavens, lands and

seas were now full of iron and lead. This

First World War, known then as ‘the great

war’ truly set the world against itself, with

European powers conquering and carving

large sections of the planet to distribute

among themselves. During this process a

Figure 1 The Balfour Declaration
strange letter was formulated, by a strange

man to an even stranger man, concerning land acquisition. The Balfour declaration, penned in

part by Arthur Balfour on behalf of the British government and sent to Lionel Walter Rothschild,

solidified a plan to establish a ‘national home for the Jewish people’, strangely in a region that
was already an established nation with an established people. What role does World War I play

in establishing the state of Israel? Who is Arthur Balfour and why does he speak on behalf of

Britain? Why does Britain have an interest in establishing a Jewish homeland? Who is Walter

Rothschild and why is the letter written to him? How does this letter irreconcilably change

Western and Middle Eastern relations for the next century, resulting in continuous stream of war

and proxy war? The geo-political history associated with this letter sent the world into a state of

conflict so intense it has been likened to the Crusades of the medieval time period. This

examination will aid in explaining why the world now has an Israeli state and what the

consequence is.

Arthur Balfour

“It has always been desirable to tell the truth, but seldom if ever necessary.”

100 years ago (to the day), Arthur Balfour, British politician and former Prime Minister,

sent and signed the document which bears his name, the Balfour declaration. This however is a

very strange notion, as Balfour himself held very separatist and racist views. Born into Scottish

aristocracy in the middle of the 19th century, Balfour was educated among the elite of Scotland,

rising through the political upper-class of the United Kingdom. With familial connections to

many key figures in England’s high society, Arthur found many avenues for scholarship and

career open to him, at the resentment of some of his colleagues. Zebel writes:

By the fortune of birth, Balfour belonged to the large land owning oligarchy

which had virtually monopolized power in Britain until the reform act of 1832

and which continued to enjoy, thereafter in alliance with the plutocratic

 bourgeoisie, political, economic and social pre-eminence until the First World

War.1

Balfour’s politics were staunchly conservative, yet his personal disposition seemed curiously

nihilistic, as were many of his contemporaries. Known for the oft-quoted, “Nothing matters

much and few things matter at all,”2 Balfour never married, with his relationships ranging from

the bizarre incestuous royal-esqe intention of marrying his cousin (even trying to contact her

spirit after her death), to a forty year sadomasochistic bond with another English socialite. Yet

Balfour’s contribution to world politics could mark the most profound historical achievement in

modern history, one that would rock the Jewish, Christian and Arab worlds and bring them

suddenly smashed together in the Holy land of Israel-Palestine. From the ashes of a war that

encompassed much of the world, the Nation of Israel was born.

Though Arthur Balfour partially created and signed the document that catapulted the

concept of an Israeli state into international acknowledgement, Balfour himself was no champion

for the rights of the Jewish, or for any other minority. In a session of the House of Commons, on

the integration of blacks into south African Society, Balfour almost single-handedly denounced

the concept, stating, “We have to face the facts, men are not born equal, the white and black

races are not born with equal capacities: they are born with different capacities which education

cannot and will not change.”3 During his time as prime minister of the UK, Balfour enacted the

Aliens Act, which severely limited the rights and immigration of minorities into the country.

This legislation was specifically aimed at the Jewish influx from Eastern Europe. The politico-

religious organization known as ‘Zionism’ (to which the addressee of the Declaration was a
1
Zebel, Sydney H. Balfour a Political Biography. (Cambridge University Press: New York) 1973.
2
Tumberg, Leslie, Beyond the Balfour Declaration: The 100 Year Quest for Israeli Palestinian Peace. (Biteback
Publishing, London 2017)
3
Arthur Balfour to the House of Commons, 31 July 1906, P.D.
major proponent of, more of which will be discussed later) was no real friend of Balfour, but

Balfour found a possible mutually beneficial cause in both establishing a Jewish enclave and

simultaneously ridding the country of an assumed superfluous cultural different. Balfour writes,

in the foreword to A History of Zionism:

If it succeeds [Zionism], it will do a great spiritual and material work for the Jews,

but not for them alone. For as I read its meaning it is, among other things, a

serious endeavor to mitigate the age-long miseries created for Western civilization

by the presence in its midst of a Body [Jews] which it too long regarded as alien

and even hostile, but which it was equally unable to expel or absorb. Surely, for

this if for no other reason, it should receive our support.4

In this strange and seemingly out-of-place introduction, Balfour argues that the Jews are possibly

hostile aliens that cause misery to western society, yet from this sentiment emerges the capacity

for a ‘renewed’ Israel. Understanding the tension between Balfour and Jews, it seems odd that he

is capitulating to the wishes of a Jewish man by the name of Rothschild in his Balfour

Declaration, even if the Zionist venture could possibly be for the benefit of both parties. The

notorious history of the Rothschild family, a family who some believe hold an iron grip on a vast

majority of the world’s wealth, comes fully into view.

The Rothschild Banking Dynasty

“Money is the god of our time. And Rothschild is his prophet” – Heinrich Heine, 1845
4
Nahum Sokolow, History of Zionism, 1600-1918. Vol I (Longman, Green and Co London), 1919.
 The ancestry of Lionel Walter Rothschild overshadows his personal story and must be

told, as descending from possibly the most infamous banking cartel in modern history. The

Rothschild family, for several generations now, have been the subject of conspiracy and anti-

Semitism, largely stemming from the intricate banking networks forged internationally by the

patriarch of the Rothschild family, Mayer Amshel Rothschild. This Jewish banking family

established in the 18th century banks that flourished in Paris, London, Frankfurt, Vienna and

Naples and at that time held the most successful financial industry in the world. This style of

banking became synonymous with a Jewish frame of thinking, expounded upon by the 1906

Jewish Encyclopedia, “With the peace of 1815 came the beginnings of international finance, in

which industrial operations in one country were assisted by loans from financiers of other

countries. The Jews, through their international position, were the first to combine into

syndicates for such purposes, and the earlier stages of national loans and the larger industrial

operations—especially those relating to railways—were largely financed by means of Jewish

capital.” Joseph Jacobs, author of this section of the encyclopedia, continues to assess the

financial reality of the 19th century and the turn of the 20th century:

Even in cases where, as in England and the United States, there were large bodies

of capitalists ready to advance money, the actual operation was often conducted

by means of Jewish firms. The practise initiated by the Rothschilds of having

several brothers of a firm establish branches in the different financial centers was

followed by other Jewish financiers, like the Bischoffsheims, Pereires, Seligmans,

Lazards, and others, and these financiers by their integrity and financial skill

obtained credit not alone with their Jewish confrères, but with the banking

fraternity in general. By this means Jewish financiers obtained an increasing share

 of international finance during the middle and last quarter of the nineteenth

century. The head of the whole group was the Rothschild family…5

Historians have connected the Rothschild family wealth and influence to every major European

conflict in their era, from the Napoleonic wars to World War I and beyond. The result of these

wars, specifically during the 20th century, led to the foundation of a Jewish state and the

subsequent occupation of the Palestinian people. It can be easily stated, that the Rothschild

family is responsible for building Israel from the ground up. Rothschild Boulevard, located in

Tel Aviv Israel, today hosts the financial district of the city.

A history of Rothschild involvement in war reads like a history of war. Andy Smith, for

the Independent writes, “The Rothschild family and politics have been intertwined for

generations, ever since Nathan Rothschild, who founded the English branch of the family

business, financed Britain's war against Napoleon two centuries ago.”6 Is it possible that one

man, or banking family could possibly have financed an entire country’s war? The 19th century

political Radical Thomas Duncombe spoke of Nathan Rothschild, “Master of unbound wealth, he

boasts that he is the arbiter of peace and war, and that the credit of nations depends on his nod.”

Niall Ferguson in his the Ascent of Money writes, “It might, indeed be assumed, that the

Rothschilds needed war…The Rothschilds had decided the fate of the Napoleonic wars by

putting their financial weight behind Britain.”7 It was Nathan Rothschild, who loaned Britain the

necessary funds to fight against Napoleon to secure a victory at Waterloo, continuing to defeat

the French General. Yet the intrigue continues, as Rothschild money was also utilized to fund

Napoleon as well. The vast wealth accumulated through the interplay of bonds and markets
5
Jacobs, Joseph, The Jewish Encyclopedia. Finance.
6
http://www.independent.co.uk/news/uk/politics/the-rothschilds-and-their-200-years-of-political-influence-
969772.html
7
Ferguson, Niell, The Ascent of Money. P 91
afforded the Rothschild to insure their victory by funding both sides of the Napoleonic era wars.

With a Rothschild bank established in five major European cities, including Paris, the family saw

profits from funding both Napoleon and the nations defending against Napoleon, using an

intricate system of couriers and messenger pigeons to discern the outcomes of battles and

preempt market crashes, developing the richest bank in the world by manipulating the value of

gold and funding various wars. Friedrich von Scherb writes of the family in 1893, “The house of

Rothschild has arisen from the quarrels between states, has become great and mighty from wars.

The misfortune of states and peoples has been its fortune”

The wealth and power increased in the Rothschild clan, investing (and choosing not to

invest) in revolutions and wars to aid in deciding the victor. A century years later a descendant of

Nathan Rothschild, Lionel Walter, would receive the Balfour Agreement for establishing Israel.

Walter Rothschild was of course born, like Arthur Balfour, into a very large and vast fortune. In

his wealth, he too afforded the opportunity of influence and sought after the cultural betterment

of his Jewish ancestry. An early supporter of the Zionist movement, Walter Rothschild saw the

long history of a destiny in Palestine emerging into a real Jewish homeland. The Rothschild

family influence, which manifested in the 19th century, was utilized specifically in the twentieth

century for social and political gain. Upon investigating the vast influence provided by the now

established banking systems in Europe, is it possible to suggest that the World War, which

inexplicably instituted the rise of a Jewish state, may have been instigated by outside influences,

to this cause? This possibility is investigated.

Zionism and the First Word War

“The international bankers swept statesmen, politicians, journalists and jurists all to one side

and issued their orders with the imperiousness of absolute monarchs.” – Lloyd George, Prime

Minister of England during the First World War.

 The forces involved in the lead up to World War I lend a dynamic theme to financial

manipulation in regards to the scheme of international politics. Governments need money to fight

wars and banks are more than willing

participants in these deadly struggles. The

bank itself is not a monolithic single idea

organism rife with sentiment or connection,

however, the banks are run themselves by

people, which in turn have political

aspiration and affiliation. As has been mentioned, the banks in Europe, for the most part, were

run by an industrious Jewish family, the Rothschilds, who in turn had Jewish aspirations, one of

which was a development of a Jewish homeland in Palestine. Thus enters Zionism. Zionism can

be defined as the 19th century goal of an independent Jewish identity and nation in Palestine

based on the perceived notion of Jews biblical promised the land of Israel. In 1897 at the First

national Zionist congress, held in Basel Switzerland, Theodore Herzl drafted a document known

as the “Basel Program”, which beginning lines states the purpose of Zionism, “Zionism seeks to

secure for the Jewish people a publically recognized, legally assured homeland in Palestine.”8

Schoeps writes, “Independently of one another, yet roughly at the same time, Jewish intellectuals

have called for a rejection of social assimilation (better: acculturation) in favor of an identity-

conscious Jewishness since the mid-nineteenth century. Voices all over Europe were

campaigning loudly for the founding of a Jewish national center in Palestine.”9 One of these

voices for a center for a Jewish center in Palestine was Edmond De Rothschild, cousin to Walter

Rothschild who received the Balfour agreement. Both Edmond in Paris and Lionel Walter in

8
http://ufdc.ufl.edu/UF00072101/00001/70j
9
Schoeps, Julius H. Pioneers of Zionism: Hess, Pinkser, Rulf Messianism, Settlement Policy and the Israeli-
Palestinian Conflict, DeGruyter Online Boooks, 2013
England, spent considerable time and money in establishing Palestine for Jewish purposes.

Pictured in Figure 2 is a 1982 500-shekel Israeli bank note, which carries the face of Edmond de

Rothschild, distinctly signaling the influence this banking family had/has in Israel.

Many considerations for a Jewish homeland were brought forth first outside of Palestine.

In response to persecutions of Russian Jews, Britain offered Theodore Herzl land in East Africa

for national Jewish homeland, in 1903.10 Known initially as the Uganda Scheme, but is now

classified in the Jewish Virtual library as the Uganda Proposal, its main proponent, Theodore
Figure 2 Edmond De Rothschild on a 500 Israeli Shekel note
Herzl, was formally given documentation

allocating 5,000 acres of land in Kenya (not Uganda) for this very purpose. While the ‘scheme’

was very nearly accepted, even with emissaries sent to spy out the land, the deal never came to

pass. This venture, however, was a foreboding precursor to the Palestinian allotment, as there

was also in the Kenyan land prior inhabitants that too had to be relocated. The question again

arises as to the hospitality of the British government in concerns with the Jewish plight. The

establishment of a place of refuge for the Jews of the world seems like an admirable good-will

gesture, but wholly out of place, and wildly non-sequitur, unless one considers the Rothschild

unit at the heart of great Britain’s financial district. Indeed, Theodore Herzl had the family in

mind when approaching Britain for aid in the building of a Jewish nation in Palestine. Herzl

writes to a friend in his diaries, “Since my plan is now dependent on the Rothschilds I naturally

think about them a lot.”11 The name Rothschild is mentioned in a compilation of his diaries over

100 times, even addressing a letter to the Rothschild family council.

10
https://www.jewishvirtuallibrary.org/the-uganda-proposal-1903
11
https://archive.org/stream/TheCompleteDiariesOfTheodorHerzl_201606/
TheCompleteDiariesOfTheodorHerzlEngVolume1_OCR_djvu.txt
 In 1903, in the sixth Zionist Congress, Max Nordau co-founder of the World Zionist

organization with Theodore Herzl, gave a prophetic announcement before the congress, one that

provided with shocking accuracy the furtherance of the Jewish cause in Palestine:

If it became apparent that it was impossible to come to an agreement with his

majesty the sultan, if his unbending will shut us out of Palestine, then, still

solemnly asserting our undying historical claims to the land of our fathers, firmly

and resolutely adhering to the Basel program, we should have to be patient and

wait. We can afford to wait.”12

This was a published transcript of the speech given by Nordau. Another recollection of

another opening speech to the Zionist Congress was recalled, and published 16 years later

by an American for the American Jewish News, a New York Newspaper running from

1918-1919.13 This speech supposedly outlined a rung ladder process towards establishing

a Jewish homeland in Palestine with the help of the British, which included the Uganda

scheme by Herzl and a future world war.14 Even directly after the First World War a

prophecy of this magnitude could not have more meaningful implications, as both the

published and unpublished documents signaled a vast desire for the Palestinian land as a

home for Jewish Zionism to flourish.

Whether or not the prophecy of Max Nordau can be maintained as such, the

prophecy of Arthur Balfour’s letter certainly can be ascertained. On December 9th (this

writer’s birthday) 1917, three weeks after the draft and sending of the Balfour

Declaration and a full year before the declared end of World War I, Jerusalem fell to
12
http://www.jewishvirtuallibrary.org/address-by-max-nordau-at-the-sixth-zionist-congress
13
http://www.nysl.nysed.gov/nysnp/all/431.htm
14
https://books.google.com/books?
id=udblAAAAMAAJ&pg=PA617&lpg=PA617&dq=litman+rosenthal&source=bl&ots=fXcEvNAi_l&sig=pABRIGi4YyjS9
hngboT8awc38pc&hl=en&sa=X&ved=0ahUKEwjbzdKJpajXAhUKziYKHRzbDik4ChDoAQg0MAU#v=onepage&q=litma
n%20rosenthal&f=false
General Allenby.15 The change in strategy to more offensive tactics in the middle east

began a year prior, with many generals in opposition to the advance. The Ottoman Turks

were already in a retreat posture in many micro fronts in the middle east (with the

exception of Asia minor) and Africa with Germany not yet defeated (and in many aspects

winning the war in the west), it seemed ill advised to divert needed resources to this

almost won region. The new Prime Minister, Lloyd George, repeatedly retracted plans to

internationalize Palestine between France and Britain for its religious appeal, to contrarily

capture it for Britain. The subsequent betrayal of this agreement pales compared to the

agreement made by the Allies and the revolting Arab population of Palestine, which were

agreed to have political control Palestine after the conflict is over. This will be discussed

further later. Lloyd George had previously expressed, “positive sentiment towards a

Palestinian homeland for the Jews” and had been in talks in his first year in office with

the French in concert with Zionist representatives Weizmann and Socolow in order to

reverse the prior arrangements with France. In prophetic fashion Palestine falls to the

British and the opportunity to create a Jewish homeland presents itself---rather is

designed. With the revolution in Russia taking on a decided Zionist spin, with Bolshevik

leaders prominently led by Zionist leaning factions, the necessity for an escape route for

Jews was no longer a factor, as it was in the Uganda Scheme. Rather this turn of fortune

was purely gain.

The factors leading up to the Jerusalem victory, the new Prime Minister that was

sympathetic to the Zionist cause, the reversal of middle eastern operations, the reversal of

British-French agreements for Palestine, and the involvement of Zionist leaders in French

diplomacy concerning Zionism, all before the assured victory and end of the war, seems
15
Brose, Eric Dorn. The Great War. Oxford University Press, New York 2010 p 283
a bit serendipitous, unless again we account for the involvement of a substantial backing

financial support group. It is true that the Rothschild’s established the first Yeshuv’s, or

Jewish settlements in Israel, prior to the war. In 1901 a letter from French Rothschild and

staunch Zionist supporter, Edmond, states, “I created the Yeshuv, I alone. Therefore, no

men, neither colonists nor organizations have the right to interfere in my plans.” While

the establishment of a Jewsih State was not to occur unitl 1948, another thirty years in the

future, the prognostication powers of this financially strong minority seem to have had a

substantial impact on world events, including two wars.

The Resulting Jewish State

 A professor once told me that wars are won by logistics, not man power or over-arching

strategy. The logistical operations of a region are more significant than its fighting strength or its

arsenal, as they cannot be deployed without the means to get to the battlefield. This in turn relies

on money and information. After World War I the Versailles Peace conference proceeds to

divide out the wartime reparations or the awards of spoil. It is then when the British Mandate of

Palestine is set forth. This is a stark

difference between the original agreement

with the indigenous Arabs, known as the

McMahon-Hussain correspondence. In the

initial correspondence between the high

commissioner of Britain and the Shariff of

Mecca the British agreed to allow the Arabs

to control the Palestinian regions conquered,

Figure 3 The Palestinian Loss of Land Since 1946 with the exception of limited areas of Syria

concerning Damascus and Aleppo. This agreement was in exchange for the Arabs revolting

against their Ottoman rulers, to the gain of the incoming British. The Balfour Agreement, which

was not publicized in Palestine, undercut this agreement, on top of the Sykes-Pinocet which

came directly before. These secret agreements, all betraying one another, link the goal of the

political Zionists with the outcome of the conflict.