881.512/67
The Diplomatic Agent and Consul General at Tangier (Blake) to the Secretary of State
[Received January 18, 1929.]
Sir: I have the honor to acknowledge the receipt of the Department’s cable Instruction No. 17 of December 27th, 1928, 3 p.m., which responds to my Despatch No. 343 of December 4th, 1928, concerning the request made by the French Resident-General at Rabat, as Minister for Foreign [Page 513] Affairs of His Shereefian Majesty, that the American Government consent to render applicable to citizens and protégés of the United States in Tangier, certain measures in regard to new taxation, which the local Tangier Administration had proposed adopting as from January 1st, 1929.
In pursuance of these Instructions I beg to transmit herewith to the Department, the French text and English translation of the communication, under cover of which Mr. Steeg submitted, for the aforementioned purpose, the text of the dispositions referred to as the “Padlock Law.” I note that it would appear extremely difficult to expect the Department’s assent to this measure, and in this connection I would respectfully confirm, and indeed emphasize, the suggestion contained in my above mentioned Despatch, that, in the interest of the preservation of the principles of our treaty rights, which are constantly being assailed, it would appear advisable for the Department categorically to refuse to apply the “Padlock Law” to American ressortissants in Morocco. I have reason to believe that the Tangier Authorities are expecting a decision of this character, for this law receives little support in other quarters.
I likewise transmit to the Department copy of the French text and English translation of the Note from the French Resident-General submitting the text of each of the 4 Taxation Laws mentioned on pages 6 and 7 of my Despatch No. 343. These Enclosures are also annexed hereto …47 The Dahirs of May 15th, 1925, referred to in these Enclosures, were the Decrees establishing the original consumption taxes, which it is now proposed to increase. These Dahirs were submitted to the Department in French and English copies47 under cover of my Despatch No. 17 of September 5th, 1925.48
There were earlier propositions to modify and increase the Gate Taxes, under the provisions of a law dated November 5th, 1927, (see my Despatch No. 254 of January 12th (1928),47 and the Taxes on Tea and Coffee by a Law dated December 31st, 1927. The impossibility at that time of subjecting the ressortissants both of Italy and of the United States to the increases in question made it necessary to suspend their application. This was effected by means of a Law dated February 25th, 1928, the abrogation of which … is to revive the increased Consumption Taxes on Tea and Coffee, in the proportions set down in my Despatch No. 343 of December 4th, 1928, (pages 6 and 7).
I gather, from the cable Instruction hereby under acknowledgment, that the Department appears inclined to endorse the considerations, exposed in my Despatch No. 343, favoring the acceptance of the taxation [Page 514] measures above discussed, subject to proper observance of the required conditions. It is my belief that these conditions have, in regard to these particular fiscal enactments, been fully complied with by the Moroccan Authorities. It is also my opinion that the Department’s consent might be given thereto forthwith, without the slightest prejudice to the treaty principles involved, and in the circumstances it is desirable that the delay of our assent should not be open to be construed as obstructing the effect of measures, which are to be applied to the nationals of all Powers without discrimination.
I am sure that the Department will appreciate the attitude which has been assumed in the premises by the Tangier Administration, both respectful of our rights and deferential to our interests. The local Government has long desired to apply the taxation in question, but has postponed its action until definitely assured of our consent.
The advance confidential information which has reached me from authorized sources in regard to the contemplated increases of the taxation, and which have been transmitted to the Department in my former Despatch on this subject, were intended to enable the American Government to notify its conditional assent prior to the actual promulgation of the laws, and by this means to permit of the simultaneous application, both to American ressortissants and to the community at large, of the measures in question, from the inception of their legal enforcement. In this way the Administration would be protected from the inconvenience of speculation calculated to defeat its legislation.
It is clearly understood that the Department’s Telegram takes into account my suggestion that, its consent to the laws would be notified to the Moroccan Authorities upon their promulgation, only in the event that they were voted without amendments, unless such amendments were to have the effect of imposing a scale of taxation inferior to that which had obtained the Department’s provisional approval. Under this formula there would be no impingement upon principles, and the urgencies and difficulties of the situation would be adequately responded to.
I am calculating that this Despatch will be in the hands of the Department by the 16th of January next, and if the Department finds it convenient, I shall therefore look to receiving its definite Instructions by telegram about the 20th of the same month.
The Department is aware that the budgetary necessities of the Tangier Administration are such as to give to this Despatch the character of urgent business.
I have [etc.]