When the British Mandate of Palestine ended and the State of Israel was established in 1948, the coins and paper currency of the Mandate ceased to be legal tender. The newly-founded state had to come up with coins and banknotes for circulation in short order. The initial attempts for domestic coin production have not met with success: the quality of the coins was poor and production was very slow. It was determined that Israel lacked the machinery and know-how for a successful large scale coin production at that time. Therefore, production of coins was outsourced to suppliers in the U.K.