I recall reading the same story on reddit in a TIL - but it was paraphrased as a looney mayor who simply declared war on the US as a joke. However this story depicts it much more accurately by giving attention to the cause which was the grievance of having tourists blocked and the offense at the explanation offered of "non of your business".
I do think that spirit is still there though. They handled their bureaucratic mistreatment very very well. I'm not sure its a repeatable solution.