Mr. Hill to Mr. White.

No. 1196.]

Sir: The Department has received Mr. Jackson’s No. 1604, of the 13th instant, relative to the question as to whether or not a consul of the United States in Germany and German subjects in the employ of an American consulate in Germany are exempt from the employees’ insurance tax.

Under the provisions of Article III of the treaty of 1871 the consul at Breslau, not being a German subject, is exempt from the payment of the tax. But, in the opinion of the Department, that exemption can not be claimed for the secretary and messenger of the consulate, who are German subjects.

The Department notes Mr. Jackson’s statement that the members of the embassy at Berlin and the United States consular officers generally throughout the German Empire have voluntarily submitted themselves and their employees to the provisions of the insurance tax law. The consul at Breslau should be advised to follow the same course, as it is to the advantage of his employees. He can undoubtedly arrange so that they shall bear the payment of the quota of the contribution which he is asked to pay.

I am, etc.,

David J. Hill,
Acting Secretary.