767.68119 F&M 2/10: Telegram

The Special Mission at Lausanne to the Secretary of State

196. At the ninth meeting of the subcommission of the second commission held January 15 regarding the future fiscal regime applicable to foreigners in Turkey Gillespie63 read the following statement:

“The future fiscal regime applicable to foreigners in Turkey is a matter of legitimate concern to the United States. The representatives of the United States desire to take this opportunity to point out [Page 951] that by virtue of treaties, usage and custom citizens of the United States have enjoyed certain rights in Turkey.

The United States understands that the Turkish Government desires to be free from any and all unwarranted restrictions upon its sovereignty. It is not the desire of the United States to obtain special privileges for itself or its nationals but it desires to protect its rights and to assure for its citizens opportunity and privileges equal to that of other nationals in Turkey.

In case existent rights are to be replaced by others with the joint consent of Turkey and the United States the new regime set up will require as a minimum not only the most-favored-nation treatment but also the equality of commercial, professional and institutional exemption, opportunity of privileges which Turkey accords to her own nationals in the field of commerce, business, education, charity or religion. A clear distinction must be made between the existence of internal [laws] of Turkey which are subject to repeal or change at any time and the existence of specified rights of [other] countries and of their nationals. It is the common custom of nations dealing with each other to define these rights by international treaties and not by domestic legislation.

The representative of the United States desires to point out particularly that the property and activity of commercial and industrial enterprises and of religious, educational, welfare, relief and charitable institutions in Turkey should enjoy any special exemptions or privileges which now exist under Turkish law or which Turkey may have the inclination to put into effect by international agreement and by internal legislation.

It is believed that Turkey will desire to provide now by treaty stipulation the guarantees that will insure the continuation of all foreign enterprises in Turkey that are to her advantage and encourage their further increase and development. Treaty stipulations are necessary to give confidence that domestic legislation will provide suitable and reliable guarantees.”

Am[erican] Mission
  1. American trade commissioner at Constantinople.