The Palestinian Jewish educational system grew out of urban schools established in the 1800s through the philanthropic efforts of the European Jewish communities and out of rural schools established at Kibbutzim from the turn of the century. Standards were set first by a Teachers' Association, then by the worldwide Zionist Organization, and finally by the National Council of the Palestinian Jewish community. Financial support came from both Palestinian and international Jewish sources, and to a minor extent from the British administration. Public elementary schools reflected the three major political trends: conservative religious (25% of pupils in 1947), leftist labor (25%), and centrist (50%). Israeli statehood brought compulsory education (1949) and centralized administration. The political basis of school types was prohibited in 1953 and replaced by a system of religious and nonreligious state schools. The major problem currently facing Israeli education is that the many cultural groups forming Israel's population, basically divisible into Western and Oriental Jewish groups, have created difficulties in achieving educational and social equality and integration. Indications are that remedial efforts will continue to modify Israel's educational system. (Author/PGD)