The Ambassador in Germany (Dodd) to the Secretary of State

No. 132

Sir: I have the honor to report that the press of August 31, 1933, announced that the German Ministry of Economics had issued a Circular Order to the Foreign Exchange Control Offices, calculated to provide funds to facilitate Jewish emigration without placing an undue demand on the Reichsbank’s supply of foreign exchange.

In reply to an inquiry, the Embassy has been informed by the Ministry of Economics that the so-called “Palestine Foreign Exchange Agreement” was laid down in an exchange of letters between the Bank of Temple Society Ltd., a Jewish institution, and the Reich Ministry of Economics. The Ministry of Economics then instructed the Foreign Exchange Control Offices in the matter. It is understood that the Foreign Office and other Ministries involved participated in the preliminary negotiations. A translation of the announcement of the new arrangement, from the Vossische Zeitung of September 1, 1933, is enclosed.18

[Page 358]

In addition to prescribing added facilities for Jews emigrating to Palestine to enable them to establish a livelihood along the lines understood to have been urged by Lord Melchett at the Prague Zionist Conference, the press announcement specifies a working arrangement whereby emigrants to other destinations may obtain the use of their income from German sources for limited periods, if they have been unable to establish a source of livelihood abroad. It also defines the status of their securities left behind in Germany by placing them in the same category as the blocked securities of foreigners.

Respectfully yours,

William E. Dodd
  1. Not printed.