711.632/24
The Secretary of State to the Minister in Austria (Washburn)
Sir: The Department has received your despatch No. 1372 of April 30, 1927, relating to the Treaty of Friendship, Commerce and Consular Rights under negotiation between the United States and Austria. It has been noted that you have preferred to deal with Dr. Schüller directly in the preliminary stages of the negotiations and that the understandings reached with Dr. Schüller on the articles reported upon in despatch No. 1372 are subject to consideration by and approval of certain of his associates, although Baron Sommaruga of the Bureau of Affairs of International Law participated in the discussions on the consular articles.
Article VII. Importations, exportations, most favored nation clause, etc. Note has been made of the fact that Article VII has been passed for the present, the Austrian Government desiring to examine carefully the amendments suggested by this Government in instruction No. 566 of April 2, 1927.
Article VIII. Internal taxes, transit duties, etc. The Department has noted that its suggestion that the words “internal taxes” be inserted in the seventh line of Article VIII after the word “to” so as to read “with regard to internal taxes, transit duties”, et cetera has been accepted by Dr. Schüller, and that he has waived his objection [Page 970] to the term “transit duties” in this Article. The Article therefore will read as set forth on page 5 of instruction No. 527 of December 1, 1926.
Article X. Right to organize corporations. It has been noted that Dr. Schüller desires the insertion of the sentence “The foregoing stipulations do not apply to the organization of and participation in political associations” at the end of the first paragraph of Article X to which the Department indicated in instruction No. 527 it would be willing to agree. It is understood, therefore, that the final draft of the Treaty will contain this sentence.
Article XI. Commercial travelers. The Department has noted from your explanation that the Austrian Trade Law does not permit commercial travelers to sell to anyone and that the prohibition extends even to the sale of samples by salesmen of Austrian nationality. You state that the law is regarded as almost fundamental and organic. In view of your statements the Department is disposed to accept the Austrian suggestion that section (c) of article XI be stricken out. In agreeing to the omission of this section the Department would like to receive the assurance of the Austrian negotiators that if during the life of the Treaty the right stipulated in section (c) should be conferred by law, treaty or otherwise upon commercial travelers of any other country, the same right would be extended to American commercial travelers in Austria by virtue of section (i) of Article XI. As noted in your despatch under acknowledgment the omission of section (c) will necessitate the relettering of all the sections of Article XI following section (b).
In the interest of uniformity in the treaties of the United States and of the possibility of peddlers of Austrian nationality vending wares in the United States, the Department would like to retain section (g) as it appears in the original draft. Inasmuch, however, as it agreed on page 8 of instruction No. 527 of December 1, 1926, to accept the provision “Salesmen who vend directly to the consumer shall not be considered commercial travellers” as a sufficient provision in regard to this matter, you are authorized to adopt that provision in lieu of section (g) of the original draft.
Article XII. Commercial travelers. Note has been made of the fact that Austrian negotiators have accepted this Government’s suggestion that the words “or other competent authorities” be inserted in the third line of the second paragraph of section (b) of Article XII after the word “officials” and that accordingly the word “customs” in the ninth line of the same paragraph should be stricken out. The section as amended will read as set forth on page 10 of instruction No. 527.
Article XV. Criminal and civil jurisdiction over consular officers. The Department notes that the Austrian negotiators agreed [Page 971] to substitute for the first paragraph of Article XV of the original draft a paragraph similar to the first paragraph of Article XVIII of the Treaty of 1923 between the United States and Germany which is quoted on page 3 of instruction No. 552 of February 11, 1927, so as to subject consular officers to prosecution for “offenses locally designated as crimes other than misdemeanors.”
It is further noted that the Austrian negotiators apparently regarded the second paragraph of Article XV as contained in the original draft as satisfactory and did not press the suggestion first made that the paragraph be altered to provide specifically that in criminal cases consular officers may be required to testify only as to matters of fact. As pointed out in instruction No. 552, the Department is of the opinion that the provision of the original draft satisfactorily covers the situation, and it is therefore pleased to note your opinion that the Austrian suggestion will be dropped.
Article XVI. Exemption of consular officers and Government property from taxation. The Department notes your statement that the Austrian negotiators apparently did not desire to press the objection originally raised to the first paragraph of Article XVI relating to the taxation of income of consular officers derived from other than immovable property as that objection was set forth on page 20 of your despatch No. 374 of December 18, 1923, and that therefore you assume that the paragraph will stand as proposed by the United States, but that it is possible that in full conference the Austrian negotiators will return to it.
You state that in accordance with instruction No. 552 authorizing you to accept the Austrian suggestion on the point, the word “governmental” in line 7 of the second paragraph of Article XVI has been stricken out and “diplomatic or consular” inserted in lieu thereof and that the paragraph will therefore read as set forth on page 10 of Instruction No. 552.
Article XVII. Privileges of consular officers. The Department notes your statement that the Austrian Government was not disposed to press its suggestion as set forth on page 22 of your despatch No. 374 of December 18, 1923, and page 2 of your despatch No. 419 of March 4, 1924,90 that provision be made in Article XVII for the protection of consular titles, arms and flags against illegal use. It is presumed therefore that the Article will remain as written in the original draft.
The Department is pleased with the manner in which you are conducting the negotiations and with the success with which you are maintaining this Government’s position. It is hoped that you will be able to make steady progress in the further negotiations so that the [Page 972] Treaty may be signed in ample time for submission to the Senate at the session which will convene in December.
If further questions arising in the course of the negotiations are not too numerous or complicated, the Department will with a view to expediting the completion of negotiations be glad to have you report by telegram in regard to such points as you may desire further instructions.
Mention is made of the fact that your despatch No. 1372 of April 30, 1927, was not signed. I am [etc.]
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