702.0641/61: Telegram
The Acting Secretary of State to the Ambassador in Great Britain (Dawes)
40. Your despatch 610 January 28th. Article 641 United States Income Tax Regulations provides:
“The income received by foreign consular officers and employees of foreign consulates from investments in the United States in bonds and stocks and from interest on bank balances as well as income from any business carried on by them in the United States is subject to Federal Income Tax.”
Income of such officers from sources outside the United States is not taxed as Treasury ruling holds that
“An alien who represents a foreign country in the capacity of a consular officer, although physically located within the United States, would not be classed as a resident alien.”
Bring the foregoing to the attention foreign office and urge that reciprocal exemption be granted to American Consul at Bristol.