Evening star., 1947-05-22

lax exemption HSue
Dn Gifts for Palestine
The United States today was con-
sidering two moves to meet British
protests against actions by some
groups In this country soliciting
funds to help finance activities In
Palestine, which the British contend
are illegal. :,
The moves under study would
involve:
/. A public appeal to Americans
to refrain from action encouraging
terrorists in Palestine while the
United Nations is trying to find q
solution to the Palestine problem.
2. A ruling that contributions to
organizations which finance illegal
activities In Palestine are not de-
ductible for income tax purposes.
Many Protests Made.
The British government has pro-
Aested many times during the last
Several months about advertisements
-appearing in some American news
papers, soliciting contributions FOL
financing Jewish resistance to the
British In Palestine and alleged
illegal immigration into the country
The latest protest, delivered to
the State Department Monday by
the British Embassy, called ofncial
attention to an advertisement pub
lished in two New York newspapers
last Thursday by the Palestine Re-
sistance Fund. The British con-
tended the advertisement amounted
to an indictment to murder British
officials in Palestine.
It was understood that no ques.
ton OF possible legal action to sup
press such advertisements was
raised, but the British note did sug-
gest a Government appeal fol-
Americans to refrain from this kind
of thing while the Palestine prob
lem Is before the United Nations
: U. N. Report Due September !.
The United Nations General AS
sembly last week unanimously
passed a resolution calling on al
! governments and peoples ito re.
frain, pending action by the Gen.
!. eral Assembly on the report Of the
special Committee on Palestine
from the threat or use Of force OF
any other action which might create
an atmosphere prejudicial to an
early settlement of the question OF
Palestine"
The U. N. committee, now in the
process of organization, is to report
to the General Assembly before Sep.
tember i.
, British officials contend such ad-
Z vertisements as that cited In Mon.
days note arr in defiance Of the
U. N. resolution.
Ad by Ben Hecht Cited.
( The latest advertisement com.
planned about was entitled Letter
to the Terrorists OF Palestine.
: Written by Ben Hecht, playwright
and co-chairman of the American
League for Free Palestine, 1t con-
tanned these words:
Every time you blow up British
arsenal, or wreck British Jail, o.
send a British railroad train sky
high, or rob British bank or LEI
60 with your guns and bombs a
the British betrayers and Invader
of your homeland, the Jews o
American make a little holiday IL
their hearts"
Secretary OF State Marshall wa
asked by 4 British correspondent
at a news conference yesterday !
ne thought contributions for suci
purposes were charitable. He sal.
he did not think 50, but refused de
tailed comment on the situation.
Charity Classification Studied.
AS result OF previous British
protests, State Department expert
are studying the narrow legal ques
ton of whether organiza tions tina
sponsor activities In Palestine which
the British contend are illegal car
be classified as charitable undel
the revenue laws.
The question arises because con.
tributors to charitable and religion,
organiza tions can deduct the
amount of their contributions, ur
to Is per cent of their income, ir
figuring their income tax.
Oficials said the Treasury De.
partment informed the State De.
partment recently that some of the
organizations whose activities hac
brought British complaints were
classified as charitable for income
tax purposes because their statee
purposes entitled them to such
classification.
Since then. the British have sug.
gested to the State Department thai
the activities actually sponsored by
some of those organizations were
not in accord with their. statec
purposes and suggested that they
should not be entitled to the char.
liable classification.
State Department experts are ex.
pected to recommend soon tina
the British complaints be put ul
to the Treasury Department again