824.512/69
The Minister in Bolivia (Feely) to the Secretary of State
[Received March 30.]
Sir: I have the honor to refer to the Department’s telegram No. 4 of February 18, 1 p.m., in reply to my despatch No. 525 of January 25, 1933, in reference to the extraordinary taxes for military purposes, created by Law September 30, 1932, and the applicability of these taxes to American citizens and corporations.
As the Bolivian Treaty with Great Britain is the most explicit, I have been following closely the negotiations undertaken by the British Minister to obtain exemption for his nationals, and for this reason decided to await an opportune moment before taking up the matter officially with the Bolivian Foreign Office.
[Page 6]On March 7 I discussed the status of American citizens and corporations in respect to this legislation with the Minister of Foreign Affairs, and found that he, personally, was in favor of the exemption of alien citizens and corporations from that part of the direct taxes which were destined for military purposes, but that his colleague, the Minister of Finance, was insisting upon full payment of all the taxes by foreigners and Bolivian nationals alike. In view of this divergence of opinion, the Minister of Foreign Affairs informed me that he had suggested to the Minister of Finance that a commission or a commissioner be appointed by the Government to discuss the question with the diplomatic representatives of the countries whose nationals are affected, and endeavor to reach an amicable settlement or transaction.
In view of this development, I addressed a note to the Foreign Office on March 9, embodying the Department’s instructions as contained in the first paragraph of the telegram above referred to, and, in addition, requesting that the matter of the payment of the extraordinary taxes be held in abeyance while the question of the rights of American citizens and corporations under the Treaty of 1858 was under discussion. Enclosure No. 1.6
The Minister of Foreign Affairs has not replied to this note, nor has the Commissioner been appointed. The Department will be informed opportunely of the Bolivian Government’s reply.
Respectfully yours,
- Not printed.↩