The Consul at Baghdad (Randolph) to the Secretary of State

No. 568

Sir: I have the honor to refer to my despatch No. 524 of July 1, 1927, and the Department’s telegram of October 1, 6 P.M., 1927, concerning the American capitulatory rights in Iraq.

[Page 816]

In this connection I have the honor to refer also to my report of September 26, 1927, entitled: “Abrogation of Capitulations in Iraq Replaced by Anglo-Iraq Judicial Agreement,”81 which discusses in some detail the attitude of the local British and Iraq officials toward the Capitulations.

After the receipt of the Department’s above mentioned telegram of October 1, 6 P.M., 1927, I took up the matter verbally with C. Empson, Esquire, Consular Secretary to His Excellency the High Commissioner, calling attention to the probable conclusion soon of a convention between Iraq and the United States and protesting meanwhile against the application of the Iraq Income Tax Law to American companies in Iraq. Mr. Empson at first tried to argue that there are no provisions in the Iraq Income Tax Law under which American companies can claim freedom from this tax. After consultation with one of the other secretaries Mr. Empson asked if he might have a few days in order to place the matter before the Acting High Commissioner.

On 10th Mr. Empson telephoned me that the Acting High Commissioner had referred the question to London and that a reply had been received, stating that the conclusion of a convention between the United States and Iraq was expected soon and instructing the High Commissioner to endeavor to persuade the Iraq Government not to apply the Iraq Income Tax Law to American companies until the conclusion of the said convention.

I have [etc.]

John Randolph
  1. Not printed.