862.512/463

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

No. 3034

Sir: As perhaps having a bearing on the future status of Jewish-owned property in Germany, I have the honor to report that the Embassy has learned of at least two authentic cases in which Jews, even though they had no intention of leaving the country, have recently been ordered to deposit with the Government financial authorities a sum equal to 25 per cent, of their property in Germany as security for payment of the Reichsfluchtsteuer or capital flight tax which is demanded of persons owning property who desire to emigrate. While the practice apparently has not yet become general and has been followed only in certain individual cases, it is nevertheless, in view of the manner in which action against the Jews has been carried out in the past, regarded as a somewhat ominous sign that possibly a large-scale attack upon Jewish-owned property may later be organized in this manner.

A copy of an order from the fiscal authorities received by the Jewish owner of a certain local firm is enclosed as of possible interest.95 It is learned that the individual in question telephoned the Finanzamt to protest that he did not contemplate leaving the country but was nevertheless directed to pay the sum originally quoted. Another Jew who was approached in like manner succeeded in having the sum demanded, which indeed was very considerable, greatly reduced. It appears that the procedure is perfectly legal on the basis of existing [Page 203] law and might conceivably be applied against any German property owner; in actual practice, however, it is being used only against Jews.

The Embassy has circularized some of the Consulates for information on this matter. The Consul General in Hamburg has replied that no such steps have yet been taken in his district but that he has been informed that action along these lines has been reported in Southern Germany. The Consul General in Frankfort states that a demand for deposit of the Reichsfluchsteuer has been made in only a few instances in his district within recent weeks, the practice occasionally being followed when the Jewish proprietor has little or no real estate in Germany but has sizeable accounts abroad. It is said that in cases where Jews sell their business they are sometimes required to deposit an amount representing the flight tax.

It is now being made practically impossible, by informal methods, for Jews to acquire, or transfer to other Jews, real estate in Germany. In cases where it is attempted, the competent authorities simply refuse to register the deed of transfer. This is an extension of a practice which was instituted in certain parts of Germany last fall (see Embassy’s despatch No. 2518 of December 5, 193596); if carried to its logical conclusion it will mean that in the course of time Jews, by being unable to will real estate to Jewish heirs, will be completely excluded from holding land in Germany.

A high Party official informed a foreign diplomat of the Embassy’s acquaintance that no new action against the Jews would be announced at the current Party Congress in Nuremberg, an assurance that accords with the general understanding here that the Government would not at so early a date attempt measures likely to spoil the good impression which it feels was made on foreign public opinion during the Olympic Games. It may perhaps be observed that from a Nazi point of view further anti-Semitic measures of a drastic and public nature are as yet hardly necessary. The Jews are being directly vilified in connection with the anti-Bolshevist campaign and in the meantime such administrative action as that cited above affords the opportunity of oppressing them relentlessly but unobtrusively. Possibly, should a favorable occasion for whetting Nazi appetites later present itself or be called for, these ministerial measures may later be embodied in a comprehensive law, as occurred last year in the case of the Nuremberg racial legislation which first had its orign in informal action by the Party.

Respectfully yours,

For the Ambassador:
Ferdinand Lathrop Mayer
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