862.4016/1981: Telegram

The Chargé in Germany (Gilbert) to the Secretary of State

698. A detailed decree dated December 3 governing employment of Jewish capital was published in the Reichsgesetzblatt yesterday evening a summary of which is given below. The decree became effective on December 3.

1.
Industrial Concerns. The holder “Inhaber” of Jewish industrial concerns as defined by the law of June 14, 1938 can be instructed to sell or liquidate within a specified time. The owner must be notified but this can be effected by publication in the Reichsanzeiger. Trustees may be appointed to effect the sale or liquidation of such Jewish undertakings. No exemption for foreign Jews is given in the text on this point.
2.
Real Property. A Jew, as defined by the Nuremberg laws can be instructed to sell his real property within a time limit under the same trustee conditions. Jews cannot acquire real estate or rights thereto by legal transaction. Disposal of real estate and rights thereto by Jews requires official approval. No exemption in text for foreign Jews.
3.
Compulsory Deposit of Securities. Within one week from December 3 Jews must deposit all securities with a foreign exchange bank and newly acquired securities must be delivered within one week of their acquisition. Holders of securities belonging to Jews can only deposit them in the bank for the account of the Jew. Disposal [Page 409] of securities so deposited requires the approval of the Minister of Economics. It is stated in the text that these provisions do not apply to Jews of foreign nationality.
4.
Precious Metals and Jewels. Jews are forbidden to acquire articles of precious metals or precious stones or to pawn or sell them privately. The same applies to jewelry and objects of art if the value exceeds 1000 marks. It is stated in the text that these provisions do not apply to Jews of foreign nationality.
5.
General Provisions. It is stipulated textually that approval to sell Jewish undertakings, real property, or other assets “can be granted on conditions that may also consist of payments of money by the purchaser in favor of the Reich.” Such aproval may also be granted on condition that the Jewish seller be allotted Reich bonds for all or part of the price agreed upon.

The regulations relating to real property are likewise applicable to industrial undertakings and other types of organizations such as societies, foundations, et cetera.

The decree contains also a section which stipulates that orders affecting a Jew of foreign nationality can only be issued with the consent of the Minister of Economics and in the case of agricultural property with the additional approval of the Minister of Agriculture or Forestry Commissioner.

Newspaper commentaries on the decree make it clear that paragraphs 1 and 2 above are intended to apply to Jews of foreign nationality as well as German Jews. For example Völkischer Beobachter writes “ownership of houses by Jews of foreign nationality does not constitute an exception. At last an end will now be put to a state of affair[s] in which half of big cities even half of Berlin belongs to Jews of German or foreign nationality. Shareholders in joint stock companies, in limited liability companies, et cetera, will also be reached [apparent omission] Jews of foreign nationality are excluded from the order regarding the sale of jewels and from the compulsion to deposit their securities whereas all the other regulations which have been issued at this time apply also to them.” The press describes the decree as an “enabling act” and states that in order to avoid undue disruption of German economy it would be systematically applied under official control. It is stated, however, that the process will be pushed as rapidly as possible within the interests of German economy and that it cannot be surmised that within a year the complete elimination of Jews from German economic life will be achieved.

Full text being mailed via Queen Mary.

I am preparing a note to the Foreign Office requesting the exemption of American citizens from the pertinent provisions of this decree.

Copy by mail to London for Rublee.

Gilbert