662.11241/51

The Ambassador in Germany (Sackett) to the Secretary of State

[Extract]
No. 121

Sir: Adverting to the Embassy’s despatch No. 5142 of December 9, 1929,41 relative to the exemption of American consular officers stationed in Germany from the payment of customs duties and internal taxes, and to the Department’s telegraphic reply thereto,42 I have the honor to report that on January 2, 1930, the Embassy addressed a Note Verbale to the foreign Office stating that German “consular officers and clerks” in the United States enjoyed the privileges of free importation.

In connection with the foregoing, there is transmitted herewith a self-explanatory copy, in original and translation, of the reply from the Ministry for Foreign Affairs.

. . . . . . . . . . . . . .

I have [etc.]

Frederic M. Sackett
[Enclosure—Translation]

The German Foreign Office to the American Embassy in Germany

Note Verbale

I. In reply to the Circular Note from the Ministry for Foreign Affairs dated November 26, 1929—I D 5114—and its enclosure (copy of the Order of the Reich Minister of Finance dated October 23, 1929,43 governing duty and tax exemption for consular goods) relative to the general offer of reciprocal exemption from duty and additional internal imposts for foreign consular representatives and the members of their families in Germany, the former Ambassador of the United States of America stated in a note of January 2, 1930—N 3377—that the German “consular officers and clerks” in the United States enjoyed the privilege of “free importation.” The note did not make mention of exemption from the payment of imposts for members of the families of persons in the consular service.

As is known, negotiations have been going on for some time between the German Government and the Government of the United States of America on the interpretation of Art. XXVII of the German-American Treaty of Friendship, Commerce and Consular Rights dated December 8, 1923, particularly on the exemption of members of the consular [Page 119] service from duty, without a complete agreement having been reached regarding the persons to be included (II) and the extension of exemption to include additional internal imposts (III).

II. The German Government is inclined to interpret the expression “consular officers and clerks” used in the Note of January 2, 1930, as meaning consuls general, consuls, vice consuls, interpreters, interpreters’ assistants and consular agents (in other words, those employees who have heretofore been included in the term “consular officers” in the American interpretation) as well as consular clerks, consular secretaries, consular treasurers, the consular personnel and other government personnel permanently assigned to consular officers (as, for instance, commercial attaches, trade commissioners, immigration officers, physicians, experts), are to be included. Should this also be the opinion of the Government of the United States of America (a communication on the subject is requested from the American Embassy) an agreement in keeping with the wishes expressed on both sides would then have been reached on the subject of the persons who shall be exempted from duty, with the exception of the members of their families who will be discussed in detail below. Art. XXVII would in that case not require interpretation by means of an exchange of notes as planned by Washington, but the exchange of notes which has already taken place would furnish the necessary clarity and the basis for uniform mutual tariffs.

That also such members of the consular service shall be granted exemption from duty who, according to the foregoing interpretation, do not fall within the term “consular officers and clerks,” namely, office boys, messengers, doormen, etc., furthermore the house servants of “consular officers” (of consuls general, consuls, vice consuls, interpreters, interpreters’ assistants and consular agents) for the reason that these persons may be considered as coming within the term “and suites” in Art. XXVII, has already been agreed upon with Washington.

The matter still to be agreed upon would therefore be to determine those members of the consular service whose families are to be granted the privilege of exemption from duty. As may be seen from the Order of the Reich Minister of Finance of October 23, 1929, the German Government is willing, provided reciprocity is vouchsafed, to grant exemption from duty to members of the families of all persons who come under the term “consular officers and clerks” in the foregoing interpretation, and the German Government would be grateful for an early statement from the American Government regarding its agreement.

III. The Foreign Office further begs to be given a more precise explanation of the term “free importation” used in the Note of January 2, 1930. As exemption from the payment of internal imposts was [Page 120] likewise offered in the Circular Note of November 26, 1929, or rather in its enclosure, and this exemption from imposts was also dealt with at length in the discussion on the interpretation of Art. XXVII, the German Government would be gratified if “free importation” were meant to express complete exemption from all imposts connected with importation, therefore also exemption from addition[al] internal imposts. Internal imposts are imposts on production or manufacture, consumption and sale—an understanding with Washington has already been reached on the subject. However, exemption is not to be extended to articles of home production or manufacture, if they are re-imported into the country of their origin or taken from warehouses which enjoy exemption from such imposts for the purpose of exportation or warehousing, and the right of importation duty free is to be applicable only to such consignments as are addressed direct to the privileged persons. Should the Government of the United States of America interpret the term “free importation” in the foregoing manner, the questions of how far it might be possible, according to the interpretation of Art. XXVII or of the most-favored-nation clause contained in Art. XVII relative to treaties with third states, to grant exemption from internal imposts to certain members of the consular service, would be answered by the fact that this privilege would be granted to “consular officers and clerks” by way of free agreement on the basis of reciprocity.

The Foreign Office would appreciate it if the attitude of the American Government in the matter could be communicated to it as soon as possible.44

  1. Foreign Relations, 1929, vol. ii, p. 1111.
  2. Ibid.
  3. Not printed.
  4. Correspondence between the Department of State and the Treasury Department led to no agreement as to the arrangement to be proposed to the German Government, and negotiations between the two Governments on this matter were discontinued.