But in the early 30s the Nazis and Zionists initially had good understanding. Is it possible for Hitler to proceed with the Holocaust but still maintain relations with the Jews in Palestine throughout WW2?

"GOEBBELS HAS A SPECIAL COIN MINTED TO CELEBRATE ZIONISM
In 1933 and 1934 The SS Untersturmführer Leopold Itz von Mildenstein from the SS Office for Jewish Affairs, travelled to Palestine on fact finding missions and he was accompanied on these tours by a number of Zionist officials. Although his first tour was planned for five months, v Mildenstein stayed over 6 months. He became a welcome guest at many Kibbutz Farms.
His PRO-Zionist report, later printed in the Reichspropaganda Ministry Official magazine ‘ANGRIFF’ with the title ‘A Nazi travels to Palestine’ (Ein Nazi fährt nach Palästina ‘) was so filled with praise and compliments about the work being done by the German Jewish settlers in Palestine that Goebbels had a special coin minted in honour of the Co-operation. The coin had a Star of David on one side and a Swastika on the other side. In recognition of this coin, Palestines largest fruit growing firm decorated its Placard Advertising signs for Jaffa Oranges, with a huge portrait of King David flanked by Swastika flags."