883.512 Motor Vehicles/21
The Minister in Egypt (Jardine) to the
Secretary of State
[Extracts]
No. 518
Cairo
, June 17, 1932.
[Received July
16.]
Sir: I have the honor to refer to my
despatch No. 497 of June 1, 1932,48 and previous despatches regarding the
restrictions imposed upon the operation of commercial motor vehicles
in Egypt, and to transmit herewith a copy of Note No. 268 of June
13, 1932, on this subject, which I handed personally to the Minister
for Foreign Affairs on that date.
Similar action has been or is being taken by my French, Italian and
Greek colleagues. There is enclosed a copy of the French note,
together with a suggested translation, the Italian and Greek Notes
following substantially the same text.49
. . . . . . . . . . . . . .
[Page 645]
There is enclosed a record of my conversation with the Minister for
Foreign Affairs on June 13th, during which it may be observed the
Minister made the interesting and significant admission that one of
the purposes of the restrictive measures imposed by the Government
was that of enabling monopolies or concessions to be granted for
truck and bus transportation. There is thus obtained for the first
time official confirmation of an intention of the Government which I
had previously reported to the Department as doubtless inspiring in
part the application of the restrictive measures imposed
recently.
. . . . . . . . . . . . . .
Respectfully yours,
[Enclosure 1]
The American
Legation to the Egyptian
Ministry for Foreign Affairs
No. 268
The Legation of the United States of America presents its
compliments to the Royal Egyptian Ministry for Foreign Affairs
and has the honor to refer to its Note No. 236 of March 31,
1932, in which the Royal Ministry was requested to be good
enough to call the attention of the Ministry of Communications
to the inapplicability, in so far as concerns American
nationals, of Ministerial Decree No. 17 of February 29,
1932,50 having to do with the
conditions affecting the circulation of automotive vehicles
intended for public hire, as well as to the serious prejudice
caused American nationals by its application.
The Legation has not as yet received any reply regarding this
question of outstanding importance to its nationals, and the
complaints which continue to be received warrant the conclusion
that the measures in question are still being applied to its
nationals. Moreover, the Legation has been called upon to
consider protests concerning the payment of a tax by the
Department of Roads and Bridges which has been collected from
owners of motor vehicles intended for the transportation of
merchandise. Since the application of such a tax to American
nationals has not been sanctioned by the Government of the
United States of America, the Legation of the United States of
America cannot admit the application of it to its nationals.
The Legation is persuaded that, in the light of the foregoing,
the Royal Ministry for Foreign Affairs will desire to intervene
with the Ministry of Communications in order that measures which
have practically estopped the freedom of circulation of
commercial motor vehicles, thereby infringing upon the liberty
of commerce recognized [Page 646]
by accords in force and consecrated by custom, will cease to be
applied to its nationals.
It would hardly appear necessary for the Legation to observe in
this connection that the solution which may be reached of the
question under reference cannot but affect consideration of such
eventual modifications as may be proposed of the legislative
regime in this matter.
The Legation of the United States of America avails itself,
etc.
[Enclosure 2]
Memorandum by the Third Secretary of the
Legation in Egypt (Merriam)
[
Cairo
,] June 13, 1932.
I accompanied the Minister to the Ministry of Foreign Affairs
this morning, where he presented a second note regarding the
restrictive regulations on the circulation of automobile trucks
and busses, acting as interpreter during the interview.
Mr. Jardine first spoke of
his purpose in calling and then observed that he had received no
reply to his first note on this subject. He said that in itself
the problem did not seem to be a difficult one but that
gradually it was assuming more and more importance because,
while the Government had taken no action, the situation of
persons in the automobile business was becoming more and more
difficult.
Yehia Pasha said that the
first note on the subject had been duly transmitted to the
competent authorities but that no reply had been received. When
it arrived it would be promptly communicated. He said that the
Government was spending large sums of money for the construction
and maintenance of roads and that it was necessary to raise
funds for this purpose by taxing automobiles; that money so
raised would be used exclusively for road construction and
maintenance.
Mr. Jardine replied that
it was not now a question of taxation. He personally was
inclined to be sympathetic to increased taxation if fairly
applied, but until the repressive and discriminatory regulations
now in force were removed it would be most difficult for him to
give favorable consideration to such proposals. Automobiles
already paid large sums in customs duties; under present
conditions once they were in the country, duty paid, they were
not allowed to circulate and consequently could not be sold by
the importers.
Yehia Pasha said the
Government could not allow trucks and busses to circulate on the
highways to an indefinite number, many of them in unsafe
condition, maintained and operated by persons or [Page 647] concerns on a shoestring basis
without adequate financial or moral responsibility. This was
unsafe for the passengers and unsafe for the pedestrians.
Frightful accidents had continually been happening to both. It
was the Government’s intention to grant bus and truck
concessions for all the important roads of Egypt to companies
who would give adequate guarantees for the proper exploitation
of the routes.
Mr. Jardine asked whether
such concessions were to be granted to one or two favored
companies as had been the case in the few concessions granted
thus far. If that should be the policy, American companies would
be absolutely finished.
Yehia Pasha replied that
bids for the routes would be asked for, and that concessions
would be granted without favoritism.
