667.003/150: Telegram

The High Commissioner at Constantinople (Bristol) to the Secretary of State

247. Department’s 78, September 1, 5 p.m. The question of Miri duties is a very small detail in connection with the taxes and duties which affect American interests. I had already settled this question by taking firm stand with Allied representatives. The tax on alcohol now being collected is the same tax that was collected in August 1914 before the war.

It seems significant to me that the negotiations for increased Miri duties have been transferred by the Allies to Washington and evidently from Department’s despatch the sentiments of the American people regarding prohibition are being appealed to. Therefore I most earnestly beg the Department not to enter into any negotiations in Washington with the British, French or Italians concerning an increase of Miri tax on alcohol without full written information from here; report follows and [it is] further recommended, as I have previously several times, that pressure be brought upon the Allied Governments to have their representatives here change their policy of attempting to regulate trade independent of American interests.

The Allied representatives have been constantly taking steps to regulate trade without consulting American interests, and in fact in many cases by ignoring American interests so that I have become convinced that they are attempting to use their position to prevent the successful establishment of American trade in the Near East.

I have steadily opposed their methods and I feel have fought them to a standstill. Thus they are attempting to transfer negotiations to Washington hoping to confuse the big issue through negotiations in detail and appealing to popular sentiment in the United States.

Referring my telegram number 221 of July 24th.20 I have reserved all our rights to final adjustment of all questions until a [Page 908] proper treaty is negotiated and am being guided by correspondence of April 1907.21 The whole question of taxation is simply one of return to the pre-war taxes of 1914 and, as a special provision to end when treaty is ratified, permission to collect an extra 4 percent tax to meet present Turkish financial embarrassment in place of the proposed consumption taxes. It is a question of 4 percent extra on all merchandise or of a consumption tax on a few articles and those few articles being the necessities of life and ones [in] which the Allies are not especially interested and will most affect our people.

Therefore I earnestly request that the Department will back me up and trust me to take no steps that will be prejudicial to the final settlement with Turkey when peace is restored. I am attempting maintain the policy that no precedents shall be established on questions settled prior to an agreement or treaty with Turkey which will be in consideration of our Government resuming diplomatic relations. Please instruct.

Bristol