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

121. A circular order of the Finance Ministry respecting the computation of the capital flight tax on Jewish property was summarized in yesterday’s press. It is decreed that in computing this tax the basis to be used is the value of the property minus the “expiatory levy” imposed last November. Furthermore the Finance Ministry adds that cases may arise where Jews would be unable to pay the capital flight tax within the time limits stipulated in their visas for emigration to other countries, and in such cases the Finance Ministry is prepared to issue “certificates of non-objection” enabling Jews to leave Germany even if the capital flight tax has not been fully paid provided an adequate security is given for it accompanied by pledges of real estate or securities.