Mr. Hay to Mr. Leishman.

No. 669.]

Sir: I am in receipt of your No. 822, of the 27th ultimo, inclosing a copy of a circular note sent by the Sublime Porte to the several embassies and legations in regard to a new stamp act, a copy of which “Loi sur le Timbre” you also inclose.

Your statement that the proposed action of the Imperial Ottoman Government interferes with well-established rights and your request that in view of the fact the Department instruct you as to the line of action it wishes you to pursue are noted, and in reply you are instructed to advise the Porte that the United States Government, while giving careful and impartial consideration to the proposed law, yet reserves to itself freedom of action in the event that a studied [Page 841] examination and experience of the administration of the new law shall disclose any conflict in its provisions with the immunities and privileges already guaranteed to the Government or citizens of the United States.

You will carefully inform yourself by conference with your colleagues and by a study of the new law in the light of subsisting immunities and privileges enjoyed by foreigners and report as to any particulars in which the new law infringes such immunities and privileges.

Every government has the sovereign right, as a general proposition, to prescribe its own system of internal taxation, and that of the United States could not legally interfere in any manner with the exercise of this right by the Porte unless it should appear that the Porte in so doing was acting in disregard of rights, immunities, or privileges guaranteed by treaty or by the capitulations to the United States.

Your action in reserving all possible rights, in your reply to the Porte, is approved by the Department.

I am, etc.,

John Hay.