811.512362 Shipping/15

The Ambassador in Germany (Houghton) to the Secretary of State

No. 843

Sir: With reference to the Department’s instruction No. 3581, of November 8 last, in regard to taxation by Germany of the earnings derived from the operation of ships documented under the laws of the United States, I have the honor to report that representations were made to the Foreign Office as directed therein,97 and to enclose herewith a copy and translation of Foreign Office Note Verbale, the substance of which was transmitted to the Department in the Embassy’s telegram No. 256, 12 noon, of December 12, 1924.98

I have [etc.]

For the Ambassador:
Warren D. Robbins

Counselor of Embassy
[Enclosure—Translation99]

The German Foreign Office to the American Embassy

No. V Steu 1998/B 49423

Note Verbale

Referring to note verbale No. 935, dated November 29, concerning the taxation of shipping companies of both countries, the Foreign Office has the honor to inform the Embassy of the United States of America that, in accordance with the proposal transmitted in the Foreign Office’s note verbale of September 3, 1924 (V Steu 1489), the Federal Minister of Finance has now, by an order dated December 9, 1924,1 instructed the subordinate financial authorities to apply the [Page 198] order of August 10, 1923, to all companies which have their seat in the United States of America regardless of the location of their management.

Thus, according to the note verbale of the Embassy of the United States of America of November 29, the conditions are fulfilled in order that, beginning January 1, 1921, the incomes derived from the operation of ships by German citizens who are not residents of the United States of America, and by companies with their seat in Germany, are exempt from the income tax in the United States of America.

Since, according to the note verbale of the Embassy of the United States of America dated November 29, the period granted for the filing of tax declarations expires on December 15 for certain German shipping companies, the Foreign Office would greatly appreciate it if the Embassy of the United States of America would inform its Government by telegraph of the change made in the order of the Ministry of Finance of August 10, 1923.

  1. By note verbale No. 935, Nov. 29, 1924. For text of note verbale, see Department of State, Executive Agreement Series No. 17, p. 9.
  2. Telegram not printed.
  3. File translation revised.
  4. Department of State, Executive Agreement Series No. 17, p. 17.