667.003/163: Telegram
The High Commissioner at Constantinople (Bristol) to the Secretary of State
[Received November 22—2:35 a.m.]
272. Department’s 93, November 15, 5 p.m. In view of return to 11 percent ad valorem system and the cooperation which I have begun to receive from my Allied colleagues since formation of new Advisory Trade Committee, believe it would be a serious mistake if Department should look upon tax situation here too exclusively from pre-war, legalistic angle without giving adequate consideration to present desperate financial situation of Turkish administration partly due to almost complete stagnation of import trade in Constantinople. Unless our policy is based upon the realities of the present economic situation my position both [with] the Turkish authorities and with my Allied colleagues will be most prejudicially affected as it will then be perfectly accurate to say that the American High Commission is playing a purely obstructive role and is manifesting either a complete ignorance of conditions in Constantinople or else is intent upon a deliberate and unaccountable disregard of these conditions. I believe that an unreasonable stand by us will simply mean that objectionable taxes will be put into effect over our protest by the Ottoman Government with the approval and assistance of the powers in military occupation of Constantinople acting under the armistice. I shall oppose consumption taxes in every way possible, but it is becoming every day more obvious that these taxes, which are accepted by all powers except the United States, cannot he fought effectively without at the same time expressing willingness to consider other possible sources of revenue. I have always carefully safeguarded our rights in any future settlement, but I cannot help recognizing the justice of the Turkish claims for revenue and consequently the desirability of according temporary recognition to certain sources of revenue over and above the 11 percent ad valorem import tariff.
In this connection I urgently request that the Department authorize me by cable to accept application American citizens of municipal taxes mentioned in my despatch no. 169 [131] of April 8, 1921,30 as a temporary measure for the period of the armistice and without prejudice to our future right. Amounts received from these taxes to be expended in maintenance of sanitary services under competent [Page 915] non-Turkish financial and technical supervision. Collection to be effected with the help of inter-Allied police. The finances of the municipality are in a lamentable shape. The vital necessity of keeping up the sanitary services is obvious and most pressing. I am convinced that to refuse to recognize these taxes would be detrimental to American interests and prestige here. I have frequently requested the Department’s assistance in rendering more effective my protests against iniquitous taxes. As an indispensable corrollary I am now requesting similar assistance in accepting taxes generally recognized as absolutely necessary.
- Not printed.↩