867.512/243: Telegram

The Ambassador in Turkey ( Steinhardt ) to the Secretary of State

1521. [Here follows account of the continuing impact of the capital levy tax on certain groups in Turkey.]

While there appears to be no provision in the law for any adjustments in the amount of the tax the Turkish Government has nevertheless made no secret that it has been bargaining with diplomatic representatives of foreign tax delinquents and accepting in many cases greatly reduced assessments in final settlement. British subjects were assessed a total of about 7,000,000 Turkish pounds and final adjustment has now been made in oil [all?] except two cases with a total payment of approximately 2,500,000. Assessments against Greeks, Belgians, Swiss and Dutch have also been reduced with the Greeks receiving the least favorable treatment.

As regards the three American cases, Socony-Vacuum has already received notice of the cancellation of one of its double assessments and should be notified of the cancellation of the other two in the near future. Mandel’s assessment of 300,000 pounds on which he paid 30,000 pounds was reduced to 75,000 pounds and as the result of a further talk between the Minister for Foreign Affairs and myself has now been settled for the amount already paid by him to wit 30,000 pounds. No action has been taken in the case of Balladur where the assessment was 1500 pounds as the Government does not yet appear to have taken up assessments as small as this.

Steinhardt