711.6521/232: Telegram
The Ambassador in Italy (Phillips) to the Secretary of State
[Received October 27—2:02 p.m.]
457. Department’s telegram 104, June 16, 6 p.m.,63 last paragraph, and Embassy’s 319, July 7, 8 p.m. The Foreign Office has now informed the Embassy that with respect to article IV of the draft consular convention the Ministry of Finance has been forced to confirm the opinion already expressed despite the efforts of the Foreign Office to surmount the difficulties presented.
In connection with paragraph 3 of article IV, the Ministry of Finance has declared that it cannot agree to exempt from customs inspection shipments of goods to the consular offices since introduction into Italy of foreign goods is always subject to preliminary customs verification whether they are to be admitted duty free or not.
[Page 505]Although in a previous communication (see Embassy’s No. 342 of April 29, 1937) the Foreign Office had stated that the free entry of all objects destined for the official use of consular offices would be authorized, the Finance Ministry now proposes to limit customs exemption of objects destined for the official use of consular offices to the period of original installation of such offices. This discrepancy has been called to the attention of the Foreign Office which agreed to reopen the subject with the Finance Ministry but considers that the latter’s decision against the extension of customs exemption to consular officers, for objects imported for personal use after the period of their first installation, is final. It is explained that the chief obstacle to such exemption lies in the fact that it would be contrary to the treatment established not only by Italian legislation but also by the numerous agreements that have been concluded between Italy and various foreign countries. The Ministry states that it is indeed true that the privileges requested by the United States would be also granted on the basis of reciprocity to Italy; but similar exemptions would automatically and as time goes on be requested by other states even though on the basis of reciprocity which might in more than one instance redound against the fiscal interests of the country.
In conclusion the Foreign Office has, however, expressed the hope that the American authorities will find it possible to reconsider their point of view with respect to this article and that the consular convention may none the less be concluded.
- Not printed.↩