667.003/114
The Acting High Commissioner at Constantinople ( Dulles ) to the Secretary of State
[Received March 22.]
Sir: With reference to my despatch No. 36 of February 2nd, communicating the text of a note addressed to the Allied High Commissioners under date of January 29th regarding the customs tariff at present in force in Constantinople, I have the honor to submit herewith for the Department’s information, copies and translations of notes dated February 11th and 17th respectively, from the Allied High Commissioners regarding this matter.6
In their note of February 11th, the British, French, and Italian High Commissioners state that they are unable to communicate the text of a decree reestablishing the 11% ad valorem tax since such a tax cannot be immediately put into force as the consumption taxes must be maintained and extended to meet the desperate state of Turkish finances.
In their note of February 17th the Allied High Commissioners informed me that they were advising their governments to authorize [Page 893] the establishment of a 11% ad valorem tax while at the same time maintaining the present consumption taxes. (High Commission’s telegram No. 56 of February 19th.7)
In my reply to these communications, a copy of which is enclosed,7a I informed the Allied High Commissioners that their notes of February 11th and 17th were being referred to the Department of State.
In view of the observation in the 5th paragraph of the Allied note of February 11th, to the effect that the reestablishment of the ad valorem tax system could only be the work of the Financial Commission, I took occasion to state that it was not admissible that the action of this Commission could impair the rights which the United States enjoyed as a result of treaty obligations previously assumed by the Ottoman Government.
I have [etc.]