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Palestine

One of the most urgent problems facing Attlee concerned the future of the British mandate in Palestine, which had become too troublesome and expensive to handle. British policies in Palestine were perceived by the Zionist movement and the Truman administration to be pro-Arab and anti-Jewish, and Britain soon found itself unable to maintain public order in the face of a Jewish insurgency and a civil war.

During this period, 70,000 Holocaust survivors attempted to reach Palestine as part of the Aliyah Bet refugee movement. Attlee's government tried several tactics to prevent the migration. Five ships were bombed by the Secret Intelligence Service (though with no casualties) with a fake Palestinian group created to take responsibility. The navy apprehended over 50,000 refugees en route, interning them in detention camps in Cyprus. Conditions in the camps were harsh and faced global criticism. Later, the refugee ship Exodus 1947 would be sent back to mainland Europe, instead of being taken to Cyprus.

In response to the increasingly unpopular mandate, Attlee ordered the evacuation of all British military personnel and handed over the issue to the United Nations, a decision which was widely supported by the general public in Britain. With the establishment of the state of Israel in 1948, the camps in Cyprus were eventually closed, with their former occupants finally completing their journey to the new country.