Interesting. It says: "United States citizens born abroad may list the city or town, rather than the country, of their birth in United States passports when there is an objection to the country listing as established by the Department of State." See link above for source.
Maybe this is a matter of a state being recognized such as Palestine. You'd then write Bethlehem instead of Israel for example.
Only thing I can imagine.
Till
Last edited by tfar; Apr 12, 2012 at 10:12 pm
Reason: corrected bad spelling error