890G.24/46: Telegram

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

177. Department’s 138, July 21, 10 p.m. Despite supporting action of British Ambassador, Prime Minister17 (acting for Foreign Affairs) persists in idea of customs convention. He has orally and the Foreign Office by note proposed the following two alternatives: (1) that materials for which exemptions are requested be imported in name of British forces in Iraq which are considered legally exempt from payment of customs duties; or (2) negotiation of customs convention between [Page 351] Iraqi and American Governments to enable former to enact a law which would render franchise legal.

Prime Minister informs me that existing Iraqi law gives no scope for administrative exemption and considers goods in question as ordinary imports into Iraq. While Embassy last May agreed with me that extension of lease-lend to Iraq might facilitate broader interpretation of existing laws, Counselor now informs me confidentially that Ambassador has found himself up against brick wall on the several occasions he has endeavored to persuade Prime Minister to liberalize legislation.

I concur with Iran-Iraq Service Command Basra that adoption of first alternative could possibly lead to useless complications. I have also in mind the safeguarding policy outlined in memoranda enclosed with Department’s strictly confidential instruction Nos. 502 and 504 on January 21 and 31, 1942.18 I respectfully request instructions and indication whether in such cases Department would initiate draft of convention.

In reference to London Embassy’s August 12, noon to Baghdad Department can doubtless more economically transmit sense of foregoing to that Embassy for its information.

Farrell
  1. Nuri as-Said.
  2. Neither printed.