File No. 711.673/49.

Ambassador Morgenthau to the Secretary of State.

[Extract]
No. 115.]

Sir: Referring to my telegram of September 10, I have the honor to inform you that all the Embassies received yesterday notification of the abrogation of Capitulations, of which I herewith enclose a copy with translation. It naturally caused great excitement amongst the Ambassadors, and through the help of the Italian Ambassador, the representatives of the six Great Powers agreed upon an identic protest to be handed to the Grand Vizier, of which I enclose a copy and translation.

I declined sending a similar note, as I considered it entirely too weak to suit our case, and preferred to make a much more vigorous protest after receiving your instructions in answer to my above-mentioned telegram.

It is well to remember in connection, with the matter that three of the nations are already committed to consent to or assist in the procuration of changes in the capitulatory arrangement: Austria, under Convention of 1909, when Bosnia and Herzegovina were annexed; [Page 1092] Italy, under Treaty of Lausanne 1912, by which, under Article 8, they agreed to assist, etc.; France, under the recent arrangement made in the Spring of 1914.

I have [etc.]

H. Morgenthau
.
[Inclosure 1—Translation.]

The Minister for Foreign Affairs to Ambassador Morgenthau.

No. 53699/89.]

Mr. Ambassador: The Imperial Ottoman Government, in its sentiments of hospitality and sympathy towards the subjects of the friendly Powers, had in former times determined in a special manner the rules to which foreigners coming to the Orient to trade there should be subject, and had communicated those rules to the Powers. Subsequently those rules, which the Sublime Porte had decreed entirely of its own accord, were interpreted as privileges, corroborated and extended by certain practices, and were maintained down to our days under the name of ancient treaties (or Capitulations). Meanwhile these privileges, which on the one hand were found to be in complete opposition to the juridical rules of the century and to the principle of national sovereignty, constituted on the other hand an impediment to the progress and the development of the Ottoman Empire, just as they gave birth to certain misunderstandings in its relations with the foreign Powers; and thus they form an obstacle to the attainment of the desired degree of cordiality and sincerity in those relations.

The Ottoman Empire, surmounting all resistance, continues to march in the path of renaissance and reform which it entered upon in 1255 by the Hatti-Humayoun of Gul-Hané and, in order to assure for itself the place which was due it in the family of the civilized peoples of Europe, it accepted the most modern juridical principles and did not deviate from the program of supporting the edifice of the State on these foundations. The establishment of the constitutional regime demonstrates with what happy success the efforts of the Ottoman Government in the way of progress were crowned.

However, as consequences deduced from the Capitulations, the intervention of foreigners in the exercise of judiciary power, which constitutes the most important basis of the sovereignty of the State; the limitation of the legislative power, by the claim put forth that many laws could not be applied to foreigners; the fact that a criminal who has committed an offense against public security is screened from the application of the laws on the sole ground of his being of foreign nationality; or again the fact that public action is compromised by the necessity of respecting in regard to the foreign delinquent all sorts of restrictions and conditions; the fact finally that, according to the nationality of the contracting parties, a difference arising from a single contract admits of a different forum and mode of procedure—all these facts and other similar restrictive privileges constitute an insurmountable barrier to all organization of tribunals begun with a view to assuring in the country the perfect working of justice.

Likewise, that consequence of the Capitulations which renders foreigners exempt and free from taxes in the Ottoman Empire renders the Sublime Porte powerless not only to procure the necessary means for providing for the carrying out of reforms, but even for satisfying current administrative needs, without having recourse to a loan. In the same order of ideas, the obstacles raised to the increase of indirect taxes result in raising the quota of direct taxes and in overburdening the Ottoman taxpayers. The fact that foreigners trading in the Ottoman Empire and enjoying there all sorts of immunities and privileges are less heavily taxed than Ottomans constitutes at the same time a manifest injustice and an infringement of the independence and dignity of the State. The Imperial Government, in spite of all these obstacles, was zealously pursuing its efforts at reform when the unforeseen outbreak of the general war brought the financial difficulties in the country to the last degree of acuteness, endangering the accomplishment of all the work which had been begun or the undertaking of which had been decided upon. Now the Sublime Porte is convinced that the only means of salvation for Turkey is to bring into being this work of reform and of development as soon as possible, and it is likewise convinced that all [Page 1093] the steps that it takes in this direction will meet with the encouragement of all the friendly Powers.

It is on the basis of this conviction that the decision has been taken to abrogate, reckoning from October 1, 1914, the Capitulations, which up to the present have constituted a hindrance to all progress in the Empire, as well as all privileges and toleration accessory to these Capitulations or resulting from them, and to adopt as the basis of relations with all States the general principles of international law.

While having the honor of communicating the present decision, which as it is to open an era of happiness for the Ottoman Empire will for this reason, I have no doubt, be received with satisfaction by the American Government, I consider it my duty to add that the Sublime Porte, inspired exclusively in its decision by the higher interests of the Ottoman land, does not nourish, in abrogating the Capitulations, any unfriendly thought in regard to any Power and that it is quite disposed to enter upon negotiations with a view to concluding with the American Government treaties of commerce on the basis of the general principles of public international law.

Kindly accept [etc.]

Said Halim
.
[Inclosure 2—Translation.]

Ambassador Morgenthau to the Minister for Foreign Affairs.

Highness: I have the honor to acknowledge the receipt of Your Highness’s letter of the 9th instant by which you kindly informed me of the decision taken by the Imperial Government to suppress the Capitulations in Turkey from October 1st next.

I will not fail to bring this decision and the considerations upon which it is based to the knowledge of my Government, but I consider it my duty at this time to point out to Your Highness, in contradiction to the beginning of your statement, that the capitulary regime, as it exists in Turkey, is not an autonomous institution of the Empire, but the result of international treaties, of diplomatic agreements and of contractual acts of various sorts. This regime, consequently, cannot be modified in any of its parts and still less be suppressed in its entirety by the Ottoman Government except in consequence of an understanding with the contracting Powers.

In the absence, therefore, of the arrival at such an understanding before October 1st next between the Ottoman Government and my own Government, it would be impossible for me to recognize executory force, after that date, in the unilateral decision of the Sublime Porte.

H. Morgenthau
.