881.512/158
The Chargé at Tangier (Childs) to the Secretary of State
[Received December 10.]
Sir: I have the honor to acknowledge the Department’s instruction no. 90 of September 27, 1941 and to report in this despatch, in accordance with the Department’s instruction, the attitude of the Powers toward the extension to Tangier of the fiscal regime of the Spanish Zone of Morocco, through a decree issued June 30, 1941 by the Commissioner of Finance of the Spanish Zone.
Mr. Gascoigne, the British Consul General in Tangier, has informed me that he has been instructed to advise British subjects not to pay any of the new Spanish Zone taxes introduced in Tangier; he has also been instructed to advise British subjects not to pay any of the increases introduced by the Spanish authorities in the taxes levied by the International Administration in the Tangier Zone. In the event of any persecution of British subjects as a result of their failure to pay these taxes, the British Consul General has been instructed to approach the Spanish Administration in Tangier and to state that the British Government does not admit any of the legislation by an alien law, and that the whole question must be discussed between the two Governments.
Mr. Polain, the Belgian Minister in charge of the Belgian Consulate General, informs me that his Government has given him no instructions in regard to the new taxes or the increase of old taxes formerly imposed by the International Administration in Tangier. Mr. Polain stated that his political position is so weak that he has felt it unwise to make any representations to the Spanish authorities [Page 574] since their taking over of the administration of Tangier. He stated that at that time a protest had been made, and he considers that that protest is sufficient to cover all subsequent illegal acts of the Spanish authorities.
Mr. Triat, the French Consul, stated that he had informed his Government of the introduction of the taxes but had received no instructions with regard to them. I asked if any of his nationals had requested his advice as to the attitude to be taken toward their payment. He replied in the negative. He did state that he knew of a case in which one of the judges of the Mixed Tribunal had refused to pay the ten percent tax assessed by the municipality on electric light bills, in the knowledge that the Mixed Court would throw out any suit brought by the Company or by the authorities to compel payment of the tax, and would no doubt entertain a suit for damages brought by a consumer against any attempt of the Electric Light Company to cut off the electric current as a consequence of a failure to pay the tax. Mr. Triat added that the Electric Light Company, so far as he knew, had made no attempt to dispute the refusal to pay the tax.
I have not thought it advisable to consult my Italian colleague on the subject, and I have not consulted my German colleague for the reason that I have never made his acquaintance. The position of the Netherlands Minister, in charge of the Netherlands Consulate General, is believed to be similar to that of my Belgian colleague.
I would, however, point out to the Department that as the American Government alone enjoys extraterritorial rights in Tangier, our position is quite different from that of my colleagues of the non-capitulatory Powers.
I would also add that the recommendations made by me with respect to the advice to be given to American ressortissants in connection with the new fiscal regime, were based on informal conversations had by me in the Department before my departure for this post. At that time it was suggested that as the situation in Tangier is to a certain extent analogous with that of the American Government position in Manchukuo, our attitude toward the fiscal regime in Tangier might follow the attitude taken by the American Government in respect of the assessment of taxes in Manchukuo. I therefore discussed this question with the officials in the Far Eastern Division, and the recommendations contained in my despatch no. 300 of August 12, 194137 were made in the light of those conversations, as a result of which it appeared that American nationals in Manchukuo were being advised to pay taxes imposed for services but to refrain, in their discretion, from the payment of other fiscal measures.
Respectfully yours,
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