667N.116/64

The Secretary of State to the Ambassador in the United Kingdom ( Kennedy )

No. 1305

Sir: In the Department’s telegram no. 1638 of December 19, 1939,29 you were requested to address a note to the Foreign Office and to inform the British Government that this Government confidently expected that that Government, in accordance with the obligations under its mandate conventions with the United States, would continue to recognize that American products must be admitted to Palestine and British mandated territories in Africa on a basis of full equality in all respects with British and all other products.

Subsequent to that telegram, the Department was informed by the American Consulate General in Jerusalem, in a despatch of January 23, 1940,30 that the Palestine authorities were disclaiming “any intent to discriminate in favor of British trade” in the administration of the import licensing system in Palestine. However, Mr. Scott of the Consulate General was informed by Mr. Fletcher, the authority in Palestine administering the import licensing system, that:

“It had been decided to stop the importation of apples from the United States and Canada. When I pressed him for an answer as to whether, when the Australian apple export season begins, licenses would be granted for Australian apples, he replied that while the question had not yet definitely arisen he would have to admit that in all probability importers would be able to obtain licenses for Australian apples.”

The Department decided that note should be taken of Mr. Fletcher’s statements to Mr. Scott and, accordingly, in a letter dated February 29, 194030 to Mr. Wadsworth, the American Consul General in Jerusalem, he was instructed to inform Mr. Fletcher “that the issuance by the authorities of licenses for the importation of any commodity such as apples from a source other than the United States, when permission for importation of the like commodity from the United States had been previously withheld, would be regarded as a breach of American treaty rights in Palestine”.

The Department is now informed in a despatch No. 1225 of February 20, 194030 from the American Consulate General in Jerusalem, a [Page 858] copy of which was forwarded you by that office, that licenses have been refused an applicant desirous of importing apples from the United States although licenses to import into Palestine apples from Australia, Rumania and Turkey have been granted. The same despatch reports that a license applied for by an American firm to import Kolynos toothpaste from the United States has been refused, although the same firm was notified that an application to import the same toothpaste from the United Kingdom would be granted. The Consulate General reports at the same time that the Palestine agent of the E. J. Reynolds Tobacco Company has been refused permission to import Camel cigarettes.

You should address a note to the Foreign Office reciting the foregoing facts and stating that you have been instructed to make a formal protest against the action of the Palestine authorities in withholding licenses for the importation of commodities from the United States when permission is granted for the importation of similar commodities from sources other than the United States. You should add that such action is, of course, inconsistent with the terms of the American-British Mandate Convention of December 3, 1924,31 assuring American trade with Palestine equality of treatment with that of the Mandatory Power or of any foreign state, and that this Government must hold the British Government responsible for any losses sustained by American interests in Palestine or in British mandated territories in Africa as a result of such violations of American treaty rights.

Please keep the Department informed of all developments in connection with this matter.

Very truly yours,

For the Secretary of State:
R. Walton Moore