881.512/66

The British Embassy to the Department of State

Aide Memoire

In his note of December 7th last His Britannic Majesty’s Ambassador had the honour to draw the attention of the Secretary of State to the desire of the International Administration of the Tangier Zone to secure the consent of the United States Government to the application to United States nationals of any legislative measures which might be passed increasing existing or introducing new taxation. The Administration were particularly anxious to secure such consent in respect of a measure relating to the consumption duties, the early introduction of which was considered to be most important, as without it, it would not be possible to balance the Budget of the Zone. This measure, a copy of which is annexed51 to this aide memoire, was intended to ensure that any future increases in the consumption duties should become applicable provisionally from the moment of the introduction of the bills specifying the particular increases.

Under instructions from His Majesty’s Principal Secretary of State for Foreign Affairs, Sir Esme Howard expressed the earnest hope of His Majesty’s Government that the United States Government would see their way to comply with this desire on the part of the Administration, which was being brought to the notice of the United States Government by the United States Diplomatic Agent at Tangier at the request of the Resident General of the French Protectorate. The note went on to explain the reasons for this request and to emphasize the [Page 518] fact that the United States Government were in no way being asked to surrender any of the rights which they enjoy in Tangier.

Further than this, Sir Esme Howard has now learnt from Sir Austen Chamberlain that the Administration of the Tangier Zone have come to the conclusion that it is essential that provision should be made for increased taxation without undue loss of time. They are anxious that the introduction of measures which they had in view for the increase of consumption duties, etc., should no longer be deferred. Draft Laws providing for an increase of these duties on tea, coffee, sugar, alcohol, and beer, and reimposing the increased Gate Tax which was abandoned at the beginning of this year, have accordingly been prepared and transmitted by His Majesty’s Consul-General at Tangier, in his capacity of President of the Committee of Control, to the Resident General of the French Zone with a suggestion that he should communicate them through the United States Representative at Tangier, to the United States Government, and at the same time request that they should be made applicable to American nationals if and when they are duly enacted. Mr. Gurney has communicated a copy of his letter to M. Steeg privately to his American colleague and a copy of the letter which contains the texts of the Draft Laws is annexed52 to this Aide Memoire.

These Draft Laws will be introduced under the existing system and will not become effective until after enactment, i. e., until they have been voted by the Assembly and approved by the Committee of Control. They are therefore in no way dependent on the passage of the Bill which formed the subject of Sir Esme Howard’s note of December 7th. If that bill were passed before the Draft Laws have been enacted, the increased duties contemplated in the Draft Laws could be applied provisionally in the Tangier Zone, but they could of course still only be applied to United States nationals in the Zone with the consent of the United States Government.

Sir Esme Howard has been instructed to inform the United States Government of the intention of the Administration of the Tangier Zone to introduce these Draft Laws proposing specific increases, to point out that the Administration have been prompted by the necessity of providing for an increase of revenue at an early date, and to express the hope of His Majesty’s Government, who are impressed with this necessity, that the United States Government will see their way to authorize their representative at Tangier to apply these measures to American nationals as soon as they become law. Such authorization would in no way prejudice their decision in respect of the bill referred to in Sir Esme Howard’s note of December 7th.

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