The Altalena Affair stands as one of the most contentious chapters in Israel's formative years. On June 1, 1948, an accord was reached between Israel Galili, on behalf of the government, and Menachem Begin, leader of the Etzel, to disband the Etzel and integrate its units into the Israel Defense Forces. The initial agreement called for the integration of Etzel battalions into the Alexandroni and Givati Brigades, whereas Etzel units in Jerusalem, which was not officially part of Israel at that time, would remain independent.

Concurrently, Etzel had been acquiring arms in France, including the purchase of an LST (Landing Ship, Tank), which they named the “Altalena”. This ship was designed to land troops directly onto beaches and carried 500 men and women, 5,000 rifles, 450 machine guns, and a million rounds of ammunition.

Originally, Ben-Gurion had permitted Etzel to secretly land the “Altalena,” despite the agreed upon ceasefire conditions that prohibited rearmament. However, Etzel demanded that 20% of the arms be allocated to its units, a proposition that Ben-Gurion rejected, emphasizing the unity of the IDF. Despite this disagreement, Etzel proceeded to land the “Altalena” on June 20th at a beach north of Netanya, beginning to offload the cargo and passengers. However, the IDF surrounded the area, taking control of the beach.

Subsequently, the “Altalena” returned to sea and anchored off the coast of Tel Aviv. When negotiations between Etzel and the government failed, Ben-Gurion ordered the shelling of the ship. The Altalena was engulfed in flames, sank, and along with it some of the arms, 12 crew members and 70 passengers were lost. The potential for civil war loomed, but Begin refused to allow it. Etzel fighters rejoined the IDF, this time as individuals rather than as units, with Etzel remaining independent in Jerusalem until September.