667N.116/56: Telegram
The Consul General at Jerusalem ( Wadsworth ) to the Secretary of State
[Received December 13—2:37 p.m.]
23. With reference to Murray’s letter of November 7 last, the Palestine Government has established an import license system, effective from December 11, 1939, applicable to 422 of the total of 760 items of merchandise in the Palestine customs classification list including all principal articles imported from the United States except apples which were inadvertently omitted. Goods shipped or despatched prior to December 11 are exempt. Director of Customs is given power to refuse to issue any license “without assigning any reason for such refusal.” A copy of Palestine Gazette Number 968 of December 11 containing ordinance and orders relating to import licenses is being forwarded today by despatch to reach the Department mid-January.
Economic Adviser in interview yesterday with Consul Scott said he was unable to give assurances that American trade will not be subject to restrictions placing it on less favorable footing than British trade with Palestine explaining that present policy in administering exchange control and import license system is to give preference to imports from British Empire sources. He justifies policy on the ground that Great Britain cannot cut Palestine adrift during the war and must afford its currency and economic interests protection of emergency measures as applied throughout the Empire. He added that any representations the Consulate General may wish to make [Page 813] on the subject will have to be referred to London as local authorities are acting under instructions from the British Government.
I am calling tomorrow to discuss the question informally with Chief Secretary and Attorney General and will further report by telegraph. No instances of refusal to grant foreign exchange permits for imports of American goods have as yet been brought to the attention of the Consulate.