667N.116/54
The Chief of the Division of Near Eastern Affairs ( Murray ) to the Consul at Jerusalem ( Steger )
Dear Steger: We have been very interested in your despatches nos. 1093 and 1095 of September 20 and 21, 193922 and particularly in the frank admissions reported on the part of the Palestine Economic Adviser and the Palestine Treasurer, respectively, that it is the intention of the Palestine authorities to administer the war emergency measures in such a manner as to restrict imports as far as possible to those from countries within the British Empire or from countries participating in the sterling exchange control.
Such frank admissions on the part of the Palestine authorities make it all the more necessary that the Consulate General should be on its guard in scrutinizing with the greatest care all laws and regulations issued under the present exceptional circumstances in Palestine. It is believed to be doubtful if the Palestine Government is likely to issue laws and regulations containing expressly discriminatory provisions against non-British, including American, interests. It seems more likely that such discrimination as may be introduced will be exercised administratively and in a manner most difficult to establish. It will, accordingly, be necessary for the Consulate General to examine with the utmost attention not only the laws and regulations which may be introduced but to follow with equal care the practical application of those laws and regulations in order to guard as far as possible against their discriminatory administration, particularly in connection with the issuance of import licenses.
Any effort, of course, on the part of the Palestine authorities to reduce American imports into Palestine with a view to reducing the demand for foreign exchange or for exchange from countries outside the sterling exchange control area would be in violation of our treaty rights in Palestine and particularly those embodied in Article 2 of the American-British Mandate Convention of December 3, 192423 and the related Article 18 of the Mandate assuring American trade with Palestine equality of treatment with that of the Mandatory Power or of any foreign state.
While this Government is not disposed to raise any question regarding the adoption of measures in Palestine which are reasonably necessary [Page 812] and consistent with the status of Palestine and the obligations of the British Government as mandatory for that territory, it cannot overlook illegal and unwarranted interferences with American treaty rights and in this connection it is unable to recognize either the necessity or justification for any refusal by the Palestine authorities to make available sufficient dollar exchange for legitimate American imports into Palestine.
I suggest that this whole matter be discussed by you with Mr. Wadsworth24 upon his return and that consideration be given to the desirability of the Consulate General making its viewpoint on a question of such importance to our trade interests informally known to the Palestine Economic Adviser and the Palestine Treasurer.
Sincerely yours,
- Neither printed.↩
- Foreign Relations, 1924, vol. ii, p. 212.↩
- George Wadsworth, Consul General at Jerusalem.↩