During the British Mandate from 1918, and in the early days after independence in 1932, well-educated Jews played an important role in civic life. Iraq's first minister of finance, Sir Sassoon Eskell, was a Jew, and Jews were important in developing the judicial and postal systems. Records from the Baghdad Chamber of Commerce show that 10 out of its 19 members in 1947 were Jews and the first musical band formed for Baghdad's nascent radio in the 1930s consisted mainly of Jews. Jews were represented in the Iraqi parliament, and many Jews held significant positions in the bureaucracy which in many cases led to resentment by the Iraqi population.
In the 1930s, the situation of the Jews in Iraq deteriorated. Previously, the growing Iraqi Arab nationalist sentiment included Iraqi Jews as fellow Arabs, but these views changed with the introduction of Nazi propaganda and the ongoing conflict in the Palestinian Mandate. Despite protestations of their loyalty to Iraq, Iraqi Jews were increasingly subject to discrimination and harsh laws. On August 27, 1934 many Jews were dismissed from public service, and quotas were set up in colleges and universities. (reminds me of Chinese in Malaysia). The teaching of Jewish history and Hebrew in Jewish schools was banned.
According to Iraqi Prime Minister Nuri Sa'id, ”The Jews have always been a source of evil and harm to Iraq. They are spies. They have sold their property in Iraq, they have no land among us that they can cultivate. How therefore can they live? What will they do if they stay in Iraq? No, no my friend, it is better for us to be rid of them as long as we are able to do so.” (A. al-Arif, p. 893) In 1948, the country was placed under martial law, and the penalties for Zionism were increased. Courts martial were used to intimidate wealthy Jews were detained, Jews were again dismissed from civil service, quotas were placed on university positions, Jewish businesses were boycotted (E. Black, p. 347) and Shafiq Ades (one of the most important anti-Zionist Jewish businessmen in the country) was arrested and executed for allegedly selling goods to Israel, shocking the community (Tripp, 123).
By 1949, the Iraqi Zionist underground had become well-established (despite many arrests), and they were smuggling Iraqi Jews out of the country illegally at a rate of 1,000 a month (Simon, Reguer, and Laskier, p 365). Hoping to stem the flow of assets from the country, in March 1950 Iraq passed a law of one year duration allowing Jews to emigrate on condition of relinquishing their Iraqi citizenship. They were motivated, according to Ian Black, by "economic considerations, chief of which was that almost all the property of departing Jews reverted to the state treasury" and also that "Jews were seen as a restive and potentially troublesome minority that the country was best rid of." (p. 91) Israel was initially reluctant to absorb so many immigrants, (Hillel, 1987) but eventually mounted an airlift operation in March 1951 called "Ezra and Nehemiah" to bring as many of the Iraqi Jews as possible to Israel, and sent agents to Iraq to urge the Jews to register for immigration as soon as possible.
From the start of the emigration law in March 1950 until the end of the year, 60,000 Jews registered to leave Iraq. In addition to continuing arrests and the dismissal of Jews from their jobs, this exodus was encouraged by a series of bombings starting in April 1950 that resulted in a number of injuries and a few deaths. Two months before the expiry of the law, by which time about 85,000 Jews had registered, another bomb at the Masuda Shemtov synagogue killed 3 or 5 Jews and injured many others. The law expired in March 1951 but was later extended after the Iraqi government froze the assets of departing Jews, including those who had already left. During the next few months, all but a few thousand of the remaining Jews registered for emigration, spurred on by a sequence of further bombings that caused few casualties but had great psychological impact. In Operation Ezra and Nehemiah, some 120,000 Jews were airlifted to Israel via Iran and Cyprus.