367.1164/127: Telegram

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


6. Reference your despatch No. 910, January 8, 1930.32

The steps you have already taken to prevent the levying by Turkish fiscal authorities of the so-called inheritance and bequest tax upon the income of American educational institutions located in Turkey are approved by the Department.
Should the Turkish fiscal authorities actually proceed to collect the tax mentioned above, thereby forcing all American institutions of educational and philanthropic nature to close, the effect upon American-Turkish relations, in the view of the Department, could not fail to be most unfortunate.
In case you deem it wise, the Department approves your seeking to interview Prime Minister Ismet Pasha with a view to informally laying before him the facts of the case and in order to acquaint him with the concern felt by this Government in this regard, as set forth under paragraph (2).
If and when you consider it advisable to lay this matter before the Turkish Prime Minister, please telegraph the Department whether you think simultaneous representations here to the Turkish Ambassador would be helpful to you.
Meanwhile, the Department would be interested to hear whether other foreign institutions of similar nature are threatened with the same tax and, if they are, what preventive steps the representatives in Turkey of the governments concerned are taking.
  1. Not printed; for its enclosure, see supra.