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Affairs that Italy will go along in whatever action the other powers

may agree upon.

Sent by mail to other missions interested.

GARRETT

884.04416/1

The Minister in Ethiopia (Southard) to the Secretary of State No. 708

ADDIS ABABA, May 2, 1931. [Received June 3.]

SIR: I have the honor to report that at a meeting of the local Diplomatic Corps which took place in December, 1930, and at which I was not present, notice was taken of a Municipal Decree published October 22nd, 1930, by the Addis Ababa City Government, entitled "Disturbance of the Peace."

The Diplomatic Corps considered that this Decree in its application to foreigners was a violation of Article 7 of the Franco-Ethiopian Klobukowsky Treaty. On behalf of the Corps as represented at that meeting the Dean addressed a Note of Protest to the Foreign Office.

There are enclosed herewith as of possible interest to the Department (1) a copy of the Decree above mentioned; (2) a copy of the Note addressed on December 20th, 1930, to the Ministry of Foreign Affairs; (3) a copy of the Foreign Office reply of March 30th, 1931, to the Dean of the Diplomatic Corps; and (4) a copy of the latter's reply of April 22nd, 1931, to the Foreign Office."

This office has taken no active part in the discussion of the Municipal Decree and will continue only an academic interest in the question unless instructed to the contrary by the Department. The protest is, however, of special interest just now in connection with the threatened denouncing by the Ethiopian Government-as previously reported from the Legation-of the Klobukowsky Treaty of which Article 7 has been invoked by the Dean of the Diplomatic Corps in the attached copies of correspondence.

Respectfully yours,

884.512 Consumption/7: Telegram

ADDISON E. SOUTHARD

The Secretary of State to the Minister in Ethiopia (Southard)

WASHINGTON, May 7, 1931-4 p. m.

8. Your despatches Nos. 677, 678 and 679 of April 1 and April 2, 1931. On the basis of the information communicated in your des

'Enclosures not printed.

"None printed; they reported a new excise tax decree.

patches, the Department is not disposed to regard the Decree of March 30, 1931, as a violation of the Franco-Ethiopian Treaty of 1908, and it concurs in your view that you should not support any further protests against the Decree which may be made by the diplomatic body.

The Department also approves your recommendation that you act in accord with your colleagues in any steps which may be taken to liberalize Article III of the Franco-Ethiopian Treaty. In this latter connection please see the Department's telegram No. 156 of April 22 to the Embassy at Paris and the replies thereto from Paris, London and Rome. All of these telegrams have been repeated to you by telegraph or by mail.

STIMSON

751.842/19

The British Secretary of State for Foreign Affairs (Henderson) to the American Chargé in Great Britain (Atherton)

11

No. J 1768/983/1 [London,] 10 June, 1931. SIR: An aide-mémoire dated the 25th April,10 which Mr. Thaw 11 communicated to this Department enquired what steps His Majesty's Government in the United Kingdom proposed to take to secure the continuance of extraterritorial rights at present enjoyed by British subjects and protected persons in Abyssinia in view of the rumoured intention of the Ethiopian Government to denounce the Franco-Abyssinian Treaty of January 10th, 1908. Attention was also drawn to the Ethiopian Government's desire to secure freedom of action in customs matters which is at present restricted by Article 3 of the above-mentioned Treaty.

2. I am happy to inform you in reply that His Majesty's Government in the United Kingdom share the view of the United States Government that there is no objection to the modification of Article 3 of the Franco-Ethiopian Treaty in such a manner as to permit the exercise by the Ethiopian Government of full fiscal autonomy provided naturally that the United Kingdom receives treatment not less favourable than that accorded to any third country.

3. His Majesty's Government also agree that it would be highly undesirable for the Powers enjoying extraterritorial jurisdiction to relinquish their rights in this regard. As you are aware, the extraterritorial rights at present enjoyed by foreigners in Abyssinia rest on an insecure foundation, since the only international treaty providing for their existence is the Franco-Ethiopian Treaty of 1908,

Copy transmitted to the Department by the Chargé in his despatch No. 2011, June 11, 1931; received June 20.

10 Not printed.

"Benjamin Thaw, Jr., First Secretary of Embassy.

591381-46—VOL. II— -22

which is subject to denunciation at twelve months' notice. Foreign nationals in general either by virtue of a treaty right to "most-favoured-nation" treatment or by custom and usage, enjoy the advantages granted to French nationals under Article 7 of this Treaty. If, however, the Ethiopian Government were to exercise their right to denounce it foreign subjects in Abyssinia would be left without any treaty foundation for the extraterritorial rights which they at present enjoy.

4. In these circumstances it seems to His Majesty's Government that the retention of the existing extraterritorial rights would best be secured by the signature of a protocol by the foreign representatives at Addis Ababa and the Ethiopian Government providing on the one hand for the modification of Article 3 of the Franco-Ethiopian Treaty so as to permit the exercise of full fiscal autonomy by the Ethiopian Government, and stipulating on the other hand that the provisions of Article 7 of the Franco-Ethiopian Treaty shall remain in force for a period of ten years subject to such modifications as may be agreed upon. His Majesty's Government are prepared to leave to His Majesty's Minister at Addis Ababa in consultation with his Colleagues of the Diplomatic Corps the decision as to what these modifications should be. It is understood that the Emperor of Abyssinia wishes to secure some treaty provision for appeals from the judgement of the Mixed Courts in cases where both the Abyssinian judge and the foreign consul are in agreement; at present no such provision exists. The diplomatic body at Addis Ababa, on the other hand, are anxious to secure the right of the foreign representative concerned to be present and take part in appeals heard by the Emperor so as to ensure that the mixed jurisdiction is not in practice eliminated in cases of appeal; they also desire that provisions should be made for the application of the law of the defendant in appeals as is the practice in cases before the Mixed Courts.

5. The amendments referred to above have been cited rather as an indication of the lines on which His Majesty's Government would like to see Article 7 of the Franco-Ethiopian treaty revised than as amendments on which they would necessarily wish to insist; nor do they desire to exclude any other amendments which might be thought desirable so long as an agreement is reached which will secure the continued operation to the benefit of all foreigners of the article in question for a period of at least ten years.

6. I shall be glad to learn whether the United States Government would be disposed to agree to a solution of this question on the lines indicated above and to instruct their Minister at Addis Ababa accordingly. I am instructing His Majesty's Representatives at Athens,12

"The British Foreign Office on June 18 informed the American Embassy that it had decided not to approach the Greek Government in this matter (751.842/20).

Berlin, Brussels, Paris and Rome to address a similar enquiry to the Governments to which they are accredited.

I have [etc.]

(For the Secretary of State)

JOHN MURRAY

884.512 Consumption/19

The Minister in Ethiopia (Southard) to the Secretary of State No. 746

ADDIS ABABA, June 17, 1931. [Received July 16.]

SIR: I have the honor to refer to the general subject of the new Ethiopian excise tax law which was promulgated at the end of last March, and which provoked a great deal of discussion in the local Diplomatic Corps with the development of opinion on the part of some of my colleagues that the law should be protested as a violation of the Franco-Ethiopian (Klobukowsky) Treaty of 1908.

All of my colleagues have since received instructions from their respective governments which are in summary to the effect that the excise tax law should not be protested as a violation of the Klobukowsky Treaty, and that they should enter into any arrangement decided upon by the local Diplomatic Corps which would lead to a liberalization of Article 3 of the Treaty as to customs duties in return for concessions by the Ethiopians which would lead to a better organization and administration of the judicial privileges obtained under Article 7 of the Treaty.

Since the receipt by all of my colleagues of their instructions along the above lines there has been no meeting of the Diplomatic Corps to discuss them and to decide upon what approach is to be made to the Ethiopian Government. . . .

Three days ago I asked the Minister of Foreign Affairs confidentially whether he had had anything on this subject from any of my colleagues individually or otherwise and he replied that he had not. There has been no renewal of the threats of the Ethiopians to denounce the Klobukowsky Treaty, although I suspect that their interest in that direction may be revived if and when the Diplomatic Corps proposes a more liberal judicial organization and procedure under Article 7 of the Treaty. Even the present special court privileges enjoyed by foreigners are distinctly resented by the Ethiopians, and I doubt whether they would yield in any substantial way to a request for revision in the direction of foreign favor or convenience. It is, therefore, probably just as well that the Diplomatic Corps is inactive and dilatory in the matter of any proposed discussion of a revision of Articles 3 and 7.

Further report will promptly be made in this matter as soon as there are developments.13

Respectfully yours,

ADDISON E. SOUTHARD

684.003/15

The Second Secretary of the French Embassy (Bousquet) to the Acting Chief of the Division of Near Eastern Affairs (Alling)

WASHINGTON, July 8, 1931.

MY DEAR MR. ALLING: Pursuant to the conversation we had today about the French viewpoint concerning the tentative new statute for foreigners and the tariff modifications in Ethiopia, I take much pleasure in enclosing herewith for your information a memorandum summing up the French viewpoint in the matter. Believe me [etc.]

[Enclosure Translation "]

RAYMOND BOUSQUET

Memorandum by the Second Secretary of the French Embassy

(Bousquet)

[WASHINGTON,] July 8, 1931. On this date I called on Mr. Alling, "Acting Chief of the Near Eastern Division" at the Department of State, and stated to him the viewpoint of the French Government as concerns tariff and jurisdiction reforms to be established in Ethiopia.

The French Minister for Foreign Affairs has been informed by the British Ambassador in Paris that the American and British Governments had agreed:

1st-To recognize the liberty of the Ethiopian Government in tariff matters;

2nd-To improve and consolidate at least for ten years the jurisdictional status of foreigners in Ethiopia.

The British Ambassador stated that the British and American Governments would consider it advantageous to combine the settlement of the two questions.

While sharing the opinion of the British and the American Governments concerning this last point, the French Government considers that it would be very dangerous to foreign trade to recognize full liberty in tariff matters of a country with the administrative methods and political instability of Ethiopia.

"A revised excise tax law, dated July 16, 1931, was reported by the Minister in his despatch No. 774, July 28, 1931 (884.512 Consumption/26).

"File translation revised.

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