Papers Relating to the Foreign Relations of the United States, 1925, Volume II

851.5123/33

The Ambassador in France ( Herrick ) to the Secretary of State

Paris , November 30, 1925 .
[Received December 11.]

No. 5778

Sir: With reference to my despatch No. 5318 of June 22nd last, and to previous correspondence with regard to the desire of the Department that the French Government should grant reciprocal income tax exemptions to American citizens living in France, I take pleasure in reporting that I have been able to secure a satisfactory settlement of this question.

While the Department stated in its instruction No. 1190 of November 10, 1924, that “there appears to be no treaty provision in force between the two countries at the present time bearing on the matter under consideration,” and while the Foreign Office, in a note enclosed with my despatch No. 4737 of January 7th last, refused to grant reciprocal exemptions on the ground that no convention existed regulating this question, I deemed it worth while to point out to the Foreign Office that a broad construction of the Consular Convention between France and the United States of 1853²² might be held to cover the point at issue. I pointed out, furthermore, in a personal interview, that, since French citizens in the United States receive the same exemptions as regards family charges, etc., that American citizens receive under our income tax law, reciprocity would, in fact, exist if the construction I desired were given the above-mentioned Consular Convention. I urged that this construction be adopted in order to put an end to the many American complaints regarding a lack of fairness in this matter and because of the good effect that such equitable action would have on American opinion.

I have to-day received a note, a copy and translation of which I am enclosing herewith, to the effect that, as a result of Article VII of the Consular Convention of 1853, American citizens in France and French citizens in the United States are assimilated to nationals of the country in which they live as regards the payment of or exemptions from taxes.

I am also enclosing a copy of my note to the Foreign Office²³ to which the foregoing note was the reply.

I have [etc.]

Myron T. Herrick

[Enclosure—Translation]

The French Ministry of Foreign Affairs to the American Embassy

The Ministry for Foreign Affairs has the honor to inform the Embassy of the United States, in reply to its note of November 12th, that from Article 7 of the Franco-American Consular Convention of February 23, 1853, it results in fact that American citizens in France and French citizens in the United States are assimilated to nationals as regards the payment of or exemptions from taxes.

The Minister of Finance will give all appropriate instructions in this connection.

Paris , November 24, 1925 .

22. Malloy, Treaties, 1776–1909, vol. i, p. 528.
23. Not printed.