Definitely an Israeli proof, but I can't make out the chronology. When was that type of British proof used? I would guess that the Luger would have had to have arrived in Israel pre-1950, as post-1948 the Czech sources of wartime arms were closed and by 1950 Israel would have been concluding arms deals that would not seem to have included 1940 Luger pistols. In addition, Britain was not a major source of arms for pre-state Israel. It is always possible that it was surplused out of Israel and later got a commercial proof in England.
Just some thoughts that revolve around the dating of the British proof marks.
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