According to an anti-royalty site:
“Columnist Ann Landers says that when she was introduced to Princess Margaret, Queen Elizabeth’s sister, Margaret demanded to know, “Are you a Jew?” and strode away when Landers answered in the affirmative.”
I don’t bother to link the site because it linked no cite. I will do a search on this, but does anyone here have more direct knowledge on this incident?
The royal family has a reputation for being obnoxious boors in the past. King Edward was a known Nazi sympathizer, and Mr. Queen Elizabeth certainly has had his moments. But this allegation from Ann Landers sounds like a rather serious incident that the world media loves to pounce upon. Yet I have not heard of it?
YOu have got to be kidding me?
KITTY KELLEY?
Well, you brought it to our attention, so you must have heard of it somewhere. 
I had not heard of it…before. Don’t get “english teacher” on me. From the opening statement I made that clear. You know well what I am saying. You are just trying to be cute.
Which is not something we discourage in General Questions.
C’mon, he appended the winkie smiley. Roll with it and move on.
That’s the smiling smiley, not the winking one.
In any event, if the source of this story is Kitty Kelley’s book, I’d say that really doesn’t make it at all probable that it’s true. Anyone else notice that the Schindler’s List anecdote was basically just Kelley presenting an unflattering synopsis of what she assumed were Margaret’s motivations based on a barely plausible third hand account of her actions and facial expressions? With a little creative writing, “I heard that the princess’s butler said that she walked out of Schindler’s List” becomes a psychological profile of said princess.
Let’s see, someone looks uncomfortable and is disturbed Schindler’s List? Isn’t that the whole point of the movie?