[Enclosure—Translation14]
Memorandum by the Second Secretary of the French
Embassy (Bousquet)
[Washington,] July 8,
1931.
On this date I called on Mr. Ailing, “Acting Chief of the Near
Eastern Division” at the Department of State, and stated to him the
viewpoint of the French Government as concerns tariff and
jurisdiction reforms to be established in Ethiopia.
The French Minister for Foreign Affairs has been informed by the
British Ambassador in Paris that the American and British
Governments had agreed:
- 1st
- —To recognize the liberty of the Ethiopian Government in
tariff matters;
- 2nd
- —To improve and consolidate at least for ten years the
jurisdictional status of foreigners in Ethiopia.
The British Ambassador stated that the British and American
Governments would consider it advantageous to combine the settlement
of the two questions.
While sharing the opinion of the British and the American Governments
concerning this last point, the French Government considers that it
would be very dangerous to foreign trade to recognize full liberty
in tariff matters of a country with the administrative methods and
political instability of Ethiopia.
[Page 225]
A—Tariff questions.
(1) The French Government considers in this matter that the Ethiopian
Decree of March 30, 1931, by which there were established excessive
consumption taxes involving discrimination according to whether the
merchandise is of native or foreign production, and also according
to the various classes of foreign commodities, is in violation of
the letter and the spirit of Article 3 of the Treaty of Klobukowski,
which guarantees moderation and equality of fiscal charges applying
to merchandise imported into Ethiopia.
The French Government therefore asks of the Ethiopian Government the
immediate repeal of the said decree.
(2) However, in consideration of the financial difficulties of the
Ethiopian Government, the French Government declares that it is
willing to assent to an extension of the time limit provided in
Article 3 of the Treaty of Klobukowski.
Thus, the present duties could be increased by 50%, it being
understood on the one hand, that the equilibrium of duties on wines,
champagnes, beers, and non-alcoholic beverages would be maintained
(which would raise these duties to 15% and 12% respectively); on the
other hand, that the contemplated increases would apply equally to
all foreign imported products, without the possibility of granting
special advantages to any country. Article 4 of the Treaty of
Klobukowski could be invoked in this respect.
(3) The French Government considers that Ethiopia should undertake,
for the future, not to establish consumption taxes on commodities
imported into its territory unless the same commodities are produced
within the nation. On the other hand, the said taxes should
represent at the most only a small percentage of the value of the
product taxed, for instance, 0.12%, or 0.15%.
B—Reorganization of the special
jurisdiction applying to foreigners.
The French Government considers that, in view of the consent in
principle that it is willing to give for the revision of Article 3
of the Treaty of Klobukowski, a reorganization of the special
jurisdiction applying to foreigners established by Article 7 of the
same document should be taken up without delay.