Between 1936 and 1939, the Palestinian revolutionary movement suffered a severe setback at the hands of three separate enemies that were to constitute together the principal threat to the nationalist movement in Palestine in all subsequent stages of its struggle: the local reactionary leadership; the regimes in the Arab states surrounding Palestine; and the imperialist-Zionist enemy. The present study will concentrate on the respective structures of these separate forces and the dialectical relations that existed among them.

The intensity of the Palestinian nationalist experience, which emerged since 1918, and was accompanied in one way or another with armed struggle, could not reflect itself on the upper structure of the Palestinian national movement which remained virtually under the control of semi-feudal and semi-religious leadership. This was due primarily to two related factors:

1. The existence and effectiveness of the Zionist movement, which gave the national challenge relative predominance over the social contradictions. The impact of this challenge was being systematically felt by the masses of Palestinian Arabs, who were the primary victims of the Zionist invasion supported by British imperialism.
2. The existence of a significant conflict of interests between the local feudal-religious leadership and British imperialism: It was consistently in the interest of the ruling class to promote and support a certain degree of revolutionary struggle, instead of being more or less completely allied with the imperialist power as would otherwise be the case. The British imperialists had found in the Zionists "a more suitable ally."

The above factors gave the struggle of Palestinian people particular features that did not apply to the Arab nationalist struggle outside Palestine. The traditional leadership, as a result, participated in, or at least tolerated, a most advanced form of political action (armed struggle); it raised progressive slogans, and had ultimately, despite its reactionary nature, provided positive leadership during a critical phase of the Palestinian nationalist struggle. It is relevant to explain, however, how the feudal-religious leadership succeeded in staying at the head of the nationalist movement for so long (until 1948). The transformation of the economic and social structure of Palestine, which occurred rather rapidly, had affected primarily the Jewish sector, and had taken place at the expense of the Palestinian middle and petty bourgeoisie, as well as the Arab working class. The change from a semi-feudal society to a capitalist society was accompanied by an increased concentration of economic power in the hands of the Zionist machine and consequently, within the Jewish society in Palestine. It is significant that Palestinian Arab advocates of conciliation, who became outspoken during the thirties, were not landlords or rich peasants, but rather elements of the urban upper bourgeoisie whose interests gradually coincided with the expanding interests of the Jewish bourgeoisie. The latter, by controlling the process of industrialization, was creating its own agents.

In the meantime, the Arab countries surrounding Palestine were playing two conflicting roles. On the one hand, the Pan-Arab mass movement was serving as a catalyst for the revolutionary spirit of the Palestinian masses, since a dialectical relation between the Palestinian and overall Arab struggles existed, on the other hand, the established regimes in these Arab countries were doing everything in their power to help curb and undermine the Palestinian mass movement. The sharpening conflict in Palestine threatened to contribute to the development of the struggle in these countries in the direction of greater violence, creating a revolutionary potential that their respective ruling classes could not afford to overlook.

The Arab ruling classes were forced to support British imperialism against their counterpart in Palestine, which was in effect leading the Palestinian nationalist movement.

Meanwhile, the Zionist-Imperialist alliance continued to grow; the period between 1936 and 1939 witnessed not only the crystallization of the militaristic and aggressive character of the colonial society that Zionism had firmly implanted in Palestine but also the relative containment and defeat of the Palestinian working class; this was subsequently to have a radical effect on the course of the struggle. During that period, Zionism, in collaboration with the mandatory power, successfully undermined the development of a progressive Jewish labor movement and of Jewish-Arab Proletarian brotherhood. The Palestine Communist Party was effectively isolated among both Arab and Jewish workers, and the reactionary Histadrut completely dominated the Jewish labour movement. The influence of Arab progressive forces within Arab labour federations in Haifa and Jaffa diminished, leaving the ground open for their control by reactionary leaderships that monopolized political action.