Papers Relating to the Foreign Relations of the United States, 1920, Volume III

867.512/69

The High Commissioner at Constantinople (Bristol) to the Secretary of State

Constantinople, 27 March, 1920.
[Received April 29.]

Sir: Enclosure (a)⁸ is a letter received from the Standard Oil Company, reviewing the general situation in connection with taxes being levied by the Ottoman Government on the principle that the Capitulations have been abrogated. During the entire time that I have been in Constantinople this special taxation, as well as all other taxation by the Ottoman Government not in accordance with the Capitulations, has continually been the subject of discussion and negotiation.

Thus far American interests have not suffered by virtue of the “Specific Taxes” levied by the Ottoman Government as contrasted with the taxes that would be levied under the Capitulations; 11% ad valorem required by the Capitulations. It was found that the Allied countries, through their High Commissioners, were not pressing the action of re-establishment of the ad valorem tariff as required by the Capitulations. It was obvious that this attitude was being taken because the interests of the countries concerned were not being affected.

It was only recently that the Allied High Commissioners were brought to address a joint note, in which the United States High Commissioner joined, insisting upon the Turkish Government reestablishing the ad valorem tariff. At the meeting when this note was prepared, the Allied High Commissioners admitted that they did not have the power to compel the Ottoman Government to restore these duties, and therefore the joint note was not worded as a demand.

It has also been determined quite reliably that the Allied High Commissioners previously to this had protested against the specific taxes as well as the so-called consumption tax, but evidently had done so as a matter of form. It has also been evident that the Allied High Commissioners have not made any strong protests against the consumption taxes because these taxes were on articles that did not affect the commercial interests of the Allies.

In view of the above facts, I have addressed a communication to the Ottoman Government through the Swedish Legation, as set forth in enclosure (b).⁹ I will continue to press this matter with the idea of gaining as much as possible through diplomatic means pending more vigorous action as the Department may direct.

Respectfully,

Mark L. Bristol

[Enclosure]

The High Commissioner at Constantinople (Bristol) to the Turkish Minister of Foreign Affairs, through the Swedish Legation in Turkey

Constantinople, 27 March, 1920.

The United States High Commissioner desires to bring to the attention of the Ottoman Government the joint note, dated 2 January, 1920, signed by the Allied High Commissioners of Great Britain, France and Italy and the High Commissioner of the United States.¹⁰ The direct import of this joint note was to insist that the ad valorem tariff be reestablished and applied under the same conditions as before the opening of hostilities in the present war. The aforesaid note distinctly required action on the part of the Ottoman Government.

The attention of the Ottoman Government is directed to Verbal Note dated 6 of March, 1920, forwarded through the Royal Legation of Sweden,¹¹ wherein it was distinctly set forth that the United States Government does not admit of any method of taxation whereby the status of Americans is in any way less favorable than that of any foreign people enjoying capitulatory rights in Turkey.

The attention of the United States High Commissioner has been directed to a new modification in regard to municipal storage taxes and octroi, by publication of new legislation on date of 5 January, 1920. The taxes provided for in this Irade are referred to as “Consumption taxes or duties” under a law of municipal taxes. The Ottoman Government must recognize that these taxes, though under another name, are nothing more than an import tax.

It seems necessary to again bring to the attention of the Ottoman Government very distinctly that the United States Government does not recognize any form of taxation that is not in accordance with the capitulations as they originally existed. It is expected that the Ottoman Government will give this matter immediate attention.

8. Not printed.
9. Infra.
10. Ante, p. 759.
11. Ante, p. 761.