File No. 8684/2.

The Acting Secretary of State to the Swedish Minister.

No. 33.]

Sir: I have the honor to acknowledge the receipt of your note of the 25th ultimo, in which, by instruction of your Government, you ask the views of this Government in regard to the proposed increase of taxes in Cairo with a view to the construction of a sewer system.

In reply I have the honor to say that the consulate-general at Cairo, under date of July 20 last, transmitted the request of the Egyptian government for the consent of the United States to the proposed increase, and was instructed in reply to report to what extent, if any, American interests would be affected thereby.

The department is awaiting that report.

The proposed increase, as reported by the consulate-general, was from one-twelfth to one-tenth of the annual rental valuation and not, it would seem, assessable on the valuation of the property itself.

Accept, etc.,

Robert Bacon.