890G.5123/16: Telegram

The Chargé in Iraq (Farrell) to the Secretary of State

119. Basra agents of Isthmian Steamship Lines insist on accounting for Iraqi income tax on earnings of vessels operated by Maritime Commission. Before I approach Iraqi Government please instruct whether [Page 347] vessels so operated are considered by our Government as liable to income tax here on freight and passenger earnings ex Iraq.

Isthmian Steamship Company, New York, has instructed its Basra agents to pay only under protest and Maritime Commission representative Basra desires Legation to intervene with Iraqi revenue authorities.

Foregoing repeated by air mail to Tehran as similar situation is understood to exist.

Farrell