A Movie Set in the Pre-State Yishuv Period

The movie is:

The Little Traitor (2009)

An implausible friendship between a British soldier and an 11-year-old Israeli militant fighting against the British occupation in 1947 Palestine.



Just a few months before Israel becomes a state their secret friendship is discovered, and the boy is reported to the town officials and brought to "trial" for being a traitor.

and

British Palestine, 1947: In just a few short months, Israel will achieve independent statehood. Proffy Liebowitz is a 12-year-old militant who wants nothing more than to see the imperialist forces pack their bags and head for the hills, but when Proffy breaks curfew one night he has an experience that will forever change his outlook on life.




Busted while roaming the streets by an amiable British soldier, Proffy is taken aback to find himself entering into a friendly conversation with a man he would have once sworn off as his mortal enemy

Isn't this an Amos Oz short-story?

It is:

Based on the novel "Panther in the Basement" by the world-renowned author, Amos Oz

And should I suspect anything here?

Sure:

"The Little Traitor" takes place in Palestine in 1947, just a few months before Israel becomes a state. Proffy Liebowitz, a militant yet sensitive 11-year-old, wants nothing more than for the occupying British to leave his land. He and his two friends spend most of their time plotting ways to terrorize and/or blow up the British until one evening, while he's out after curfew, Proffy is seized by Sergeant Dunlop. Instead of arresting him, the British officer deposits Proffy back home, and soon the foes become friends. Proffy, who is estranged from his own father, begins to see Dunlop as a parental figure. Dunlop, lonely and poetic, loves the spirited boy and they find lots to talk about in their meetings, which Proffy must keep a secret. When Proffy's friends follow him one day and see that he has been visiting the detested enemy, they report him to the town officials and Proffy is brought to "trial" for being a traitor.



"Although 'The Little Traitor' is a historical drama, it has tremendous relevance to the Israeli and the Palestinian conflict," says director Lynn Roth.

Oz belonged to the Revisionist Klausner family but rebelled and has been besmirching the nationalist wing of Zionism for the past 45 years.

Trailer here.