667n.113/1: Telegram
The Secretary of State to the Ambassador in Great Britain (Kellogg)
315. The American Consul at Jerusalem, under date of August 19, 1924, telegraphed the Department “New customs duties amendment ordinance increasing considerably rate on imported articles published August 15th, and duty collected under new schedule from August 18th”.
As you are aware, this Government has consistently taken the position that pending the final determination of the status of the territories detached from the Ottoman Empire, and in the absence of the assent of the interested Powers to the suspension or modification of the rights derived from the capitulations, the authorities administering territories detached from the Ottoman Empire are bound by the obligations incident to the existence of the capitulatory regime. By virtue of the capitulations American citizens in Palestine are entitled to exemption from all taxes except such as are approved by this Government.
You should call the foregoing to the attention of the British Government and say that this Government would be pleased to receive an expression of the views of the British Government with respect to the situation in Palestine which has arisen as a result of the reported attempt to collect from American citizens an increased customs duty to which the assent of this Government had not been previously requested.
You may likewise inform the British Government that the Department has forwarded to you by mail a note to be communicated [Page 201] to the British Government assenting, except as regards certain minor points, to the proposals made by the British Government in its note of July 17, 1924 enclosed with your despatch No. 606 of July 24, 1924.21 You may add that this Government confidently expects that it will be possible to sign the proposed Palestine Mandate convention at an early date. Repeat to American Consul Jerusalem for his information only.