881.512/153

The Diplomatic Agent and Consul General at Tangier ( White ) to the Secretary of State

No. 34

Sir: I have the honor to enclose herewith the French text and English translation of a Dahir dated February 26, 1940,76 modifying and completing the Dahir of October 9, 1920, which created a “Patente” Tax, or tax on professions and trades in French Morocco.

The Resident General at Rabat has requested that this modifying decree be made applicable to American nationals and ressortissants in the Zone of the French Protectorate.

As a matter of convenience I attach hereto a Memorandum76 recapitulating the action taken by the Department in regard to the original “Patente” Tax decree of October 9, 1920, as well as to subsequent amending Dahirs previous to that of February 26, 1940, which is now submitted for the Department’s consideration.

Subject to the usual reservations, there would appear to be no objection to the enforcement upon American nationals and ressortissants of this last mentioned decree.

An additional observation appears necessary however upon its final caption: “Provisions Common to Tables A and B.” This section of the Dahir of February 26, 1940, includes as an item of variable taxation, a charge of Francs 5.00 per horsepower unit on the maximum motor power of automobile vehicles employed in the pursuit of trades and professions.

In this connection it is recalled that the Department has raised objection to the principle of the use in Morocco of the H. P. unit as a basis of automobile taxation, on the grounds that this method of taxation involves discrimination against American made automobiles, (see Instruction No. 779 of February 15, 1934, File No. 881.512 Motor cars/2876); moreover, the H. P. basis of taxation on motor vehicles in [Page 827] French Morocco was abandoned and replaced by an increase of the consumption tax on gasoline. (Dahir of November 28, 1935, Articles 1 and 9).

In view of this indirect revival of the objectionable basis of taxation on motor cars by means of its introduction into a tax on trades and professions, the Department may consider it advisable to exclude the variable tax item on automobile Horse Power from its assent to the remainder of the provisions of the Dahir of February 26, 1940.

A similar situation was reported in my predecessor’s despatch No. 1262 of February 27, 1937,77 in connection with a request of the Residency General at Rabat for the American Government’s assent to a Dahir dated September 21, 1936, also issued to complete the then existing decrees relative to the “Patente” Tax in French Morocco. No instruction has reached the Legation in reply to that despatch.

Respectfully yours,

J. C. White
  1. Not printed.
  2. Not printed.
  3. Not printed.
  4. Not printed.