The day after Israel declared its independence on May 14, 1948, the new nation was invaded from all sides by Arab armies. That failed. So humiliated Arab governments turned on their own Jewish citizens to exact the revenge they had publically promised: confiscation of assets, denaturalization, and finally expulsion to the new state of Israel as a demographic time bomb. Iraq was the model. Here’s how they did it.
On July 19, 1948, Iraq amended Law 51 against anarchy, immorality, and communism, adding the word “Zionism.” Zionism itself now became a crime, punishable by up to seven years in prison. Every Jew was thought to be a Zionist, thereby criminalizing every Jew.
After The Third Reich fell, some 2,000 ex-Nazis escaped to Arab countries to continue the war against the Jews. Soon, the familiar sequence of Nazi-style pauperization began in Baghdad. Jewish businesses were boycotted; their owners were systematically arrested. Their funds dried up
The once genteel and gracious life of Jews in Iraq was about to terminate. Zionist groups stepped up activities. Thanks to big bribes paid to Iranian officials, Iraqi Jews in large numbers were now permitted to transit via Iran, eventually 1,000 per month.
With the escapees went their remnant money and some possessions. Quickly, the rapid subtraction of Jews from the financial, administrative, retail, and export sectors proved devastating to Iraq’s economy. Over 26 centuries, Jews had become essential to the economy. An estimated 130,000 Jews lived in the Iraq of 1949, with about 90,000 residing in Baghdad. Jewish firms transacted 45 percent of the exports and nearly 75 percent of the imports.