711.672(1929)/12: Telegram

The Ambassador in Turkey (Grew) to the Secretary of State

55. Supplementing my 54, September 11, 11 a.m. Turkish treaty delegation refers to phrase, in article 1 of Department’s text, “other duties and charges affecting commerce”, and states that the delegation interprets this phrase as applying to the imposition of consumption taxes, octroi charges, et cetera, on the importation and exportation of merchandise. They do not construe it as including the levying of income taxes or taxes on profits of individuals or companies engaged in business which should more properly be dealt with in a convention of residence and establishment. They add that Turkey does not now impose discriminatory taxes on American [Page 830] citizens or companies doing business in Turkey and that it has no intention of levying such taxes. The delegation requests that the precise meaning of the foregoing phrase be defined in a protocol to the treaty.

Grew