I remember the Jewish line too. (I first saw the film at a cinema in the UK in '89). However, I do have access to an original US Theatrical print and the line is censored on the print:
Those relatively flat audio lines on the optical track are where the word “Jewish” should be. This makes me wonder if all the US prints were censored from the beginning.
Here is the full clip:
If you change the delay to play the audio 20 frames (-833 ms ?) earlier to match the waveform printed on the film (since the sound head is further down inside the projector, in order to have picture and sound in sync during projection, the audio needs to be at the same point as the picture when the picture is in the gate. So the part of the optical track for this frame already passed through the gate 20 frames ago…) you can more easily see where the dialog is missing (you can check this by switching to audio track 2 in the provided clip).