867N.5151/8: Telegram
The Consul at Jerusalem (Steger) to the Secretary of State
[Received 12:15 p.m.]
9. Referring to my despatch No. 1095, September 21,29 Treasurer of Palestine Government informs me that Defense “Finance” Regulations 1939 will be applied as follows.
[Page 817]American citizens temporarily or permanently residing in Palestine are required to offer for sale at once all foreign exchange in the specified currencies including bank balances in United States. This will be strictly enforced and prosecutions will shortly be initiated in cases of noncompliance.
An order of the High Commissioner under regulation 7 of these regulations, published October 10, provides for similar control over securities. Copies being forwarded by airmail.
I have expressed the opinion that the assumption by Palestine Government of jurisdiction over American property located in the United States of America lacks legal validity. Treasurer states identical legislation is being enforced in Great Britain and is considered valid.
If Department has made representations regarding such legislation in Great Britain I should appreciate being kept informed and instructed whether to take action here. In the meantime should I advise Americans here to comply with the above provisions? Up to the present I have advised postponement as respects foreign bank balances and securities.
- Not printed.↩