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In 1558, a Portuguese-born marrano, Doña Gracia, was granted tax collecting rights in Tiberias and its surrounding villages by Suleiman the Magnificent.
She envisaged the town becoming a refuge for Jews and obtained a permit to establish Jewish autonomy there.
In 1561 her nephew Joseph Nasi, Lord of Tiberias, encouraged Jews to settle in Tiberias. Securing a firman from the Sultan, he and Joseph ben Adruth rebuilt the city walls and lay the groundwork for a textile silk industry, planting mulberry trees and urging craftsmen to move there.
Plans were made for Jews to move from the Papal States, but when the Ottomans and the Republic of Venice went to war, the plan was abandoned.
http://en.wikipedia.org/wiki/Tiberias
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