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The planner for the Rehavia Neighborhood, the architect Richard Kauffmann, designated the large lot in the northern part of the neighborhood for erecting the National Institutions Building while he planned to erect the Gymnasia Rehavia, which had operated until then in rented apartments in the Bukharan Quarter, in the eastern part of the area, near King George Street. However, the administrators of the Gymnasia were unhappy with the location determined by Kauffmann. They objected to the Gymnasia being near a main road. Thus a "swap" occurred: The Gymnasia was moved to a more central location in Rehavia and the National Institutions Buildings was moved eastward.
It was only in early 1928 that the small Jewish Yishuv in the Land of Israel, with its population of no more than 160 thousand, became aware that a "National Institutions Building" was about to be erected, which would house the offices of the four national entities that had operated in those days: The Zionist Executive, KKL-JNF, Keren Hayesod and the Jewish National Council. Periodically, short news articles were published in the three daily newspapers of the era: "Haaretz," "Doar Hayom" and "Davar."
The first article was published in "Davar" on February 7, under the headline "To the Construction of the National Institutions Building." It reported that the KKL-JNF was the first Zionist institution that secured a large loan of 10,000 Palestine Pound from the "Phoenix" Insurance Company, in order to build its home on the outskirts of the Rehavia Neighborhood. It further reported that an architectural competition for planning the building would be announced soon. In addition, efforts were being made to acquire loans for Keren Hayesod and the Zionist Executive as well, so that they too would be able to finance the erection of their home.
KKL-JNF stated that it would wait for the results of the architectural competition in order to start building its home. However, it had no intention of waiting until financing was secured for the construction of the other institutions, and if they failed to secure it, KKL-JNF would begin construction of its home as part of the complex.
About two months later, it became known that the Zionist Executive had also contacted the "Phoenix" Company in order to receive a loan similar to that received by KKL-JNF, and under the same terms, in order for it to proceed, as soon as possible, with the erection of its part in the National Institutions Building. In the case of the Zionist Executive, since it required a larger number of offices and rooms, the requested loan was for 16 to 17 thousand Palestinian Pounds. Keren Hayesod has also shown an interest in securing a loan in order to erect its share in the building as a whole. As for the Jewish National Council, the plan was for it to build its own building as an annex to the National Institutions Building.

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