A-Tariff questions. (1) The French Government considers in this matter that the Ethiopian Decree of March 30, 1931, by which there were established excessive consumption taxes involving discrimination according to whether the merchandise is of native or foreign production, and also according to the various classes of foreign commodities, is in violation of the letter and the spirit of Article 3 of the Treaty of Klobukowski, which guarantees moderation and equality of fiscal charges applying to merchandise imported into Ethiopia. The French Government therefore asks of the Ethiopian Government the immediate repeal of the said decree. (2) However, in consideration of the financial difficulties of the Ethiopian Government, the French Government declares that it is willing to assent to an extension of the time limit provided in Article 3 of the Treaty of Klobukowski. Thus, the present duties could be increased by 50%, it being understood on the one hand, that the equilibrium of duties on wines, champagnes, beers, and non-alcoholic beverages would be maintained (which would raise these duties to 15% and 12% respectively); on the other hand, that the contemplated increases would apply equally to all foreign imported products, without the possibility of granting special advantages to any country. Article 4 of the Treaty of Klobukowski could be invoked in this respect. (3) The French Government considers that Ethiopia should undertake, for the future, not to establish consumption taxes on commodities imported into its territory unless the same commodities are produced within the nation. On the other hand, the said taxes should represent at the most only a small percentage of the value of the product taxed, for instance, 0.12%, or 0.15%. B-Reorganization of the special jurisdiction applying to foreigners. The French Government considers that, in view of the consent in principle that it is willing to give for the revision of Article 3 of the Treaty of Klobukowski, a reorganization of the special jurisdiction applying to foreigners established by Article 7 of the same document should be taken up without delay. 884.04416/4 The Acting Secretary of State to the Minister in Ethiopia (Southard) Municipal Decree published October 22, 1930, by the Addis Ababa City Government providing for the trial in an Ethiopian Tribunal of certain cases affecting extraterritorial nationals. After a careful consideration of this matter the Department has come to the conclusion that the purpose and effect of the final paragraph of Article 7 of the Franco-Ethiopian Treaty of January 10, 1908, was to exempt French nationals or protégés accused of crimes. or delicts from the laws of Ethiopia and, except as otherwise provided in the preceding paragraphs of Article 7, from the jurisdiction of Ethiopia. The Department is, therefore, of the opinion that the Municipal Decree published by the Addis Ababa City Government on October 22, 1930, contravenes the treaty provision mentioned and consequently that it is in contravention of the rights of American nationals in Ethiopia which are derived from the Franco-Ethiopian Treaty through the treaty concluded between the United States and Ethiopia on June 27, 1914. The Department desires that you associate yourself with the action of the Diplomatic Corps at Addis Ababa in protesting the application of that part of the Decree which subjects extraterritorial nationals to its provisions. Very truly yours, W. R. CASTLE, JR. 684.003/15 The Acting Chief of the Division of Near Eastern Affairs (Alling) to the Second Secretary of the French Embassy (Bousquet) WASHINGTON, July 20, 1931. MY DEAR MR. BOUSQUET: Please accept my thanks for your letter of July 8, 1931, enclosing a memorandum setting forth the viewpoint of your Government regarding tariff modification and judicial privileges for foreigners in Ethiopia. I believe that our Embassy at Paris has given your Foreign Office our general views on these questions which briefly are as follows: 1. We are disposed to give the Ethiopians freedom of action in the matter of customs tariffs provided that our trade receives treatment not less favorable than that accorded to any third country. 2. In view of the undeveloped state of the present judicial system in Ethiopia we think that suitable provision should be made for the continuance of extraterritorial jurisdiction. We are authorizing our Minister Resident at Addis Ababa to join with his colleagues of the Diplomatic Corps in discussing the means by which some general agreement on this question may be worked out. Very sincerely yours, PAUL H. ALLING 751.842/24 The Acting Secretary of State to the Minister in Ethiopia (Southard) No. 201 WASHINGTON, July 28, 1931. SIR: The Department has been informed that the Embassy at London has transmitted to you a copy of its despatch No. 2011 of June 11, 1931,1 together with a copy of its enclosure, a note dated June 10, 1931, from the British Foreign Office with regard to the proposed modification of Articles three and seven of the Franco-Ethiopian Treaty of January 10, 1908. For your convenience a copy of the above mentioned despatch and a copy of its enclosure are attached hereto. The Department is in agreement with the Foreign Office that it would be desirable to amend Article three of the treaty in question so as to permit the exercise by the Ethiopian Government of full fiscal autonomy, provided that the United States receives treatment not less favorable than that accorded to any third country. It is also of the opinion that it would be desirable to clarify and expand the text of Article seven of the treaty along the lines suggested in paragraph numbered four of the Foreign Office note. You are, therefore, authorized to join with your colleagues of the Diplomatic Corps in discussing the character of the modifications in question and the means by which they may be accomplished. The Department is prepared to leave to your discretion and judgment the details of these modifications which it believes should be along the general lines suggested in the Foreign Office note. Before authorizing you to accept definitely any arrangements that may be agreed upon by the Diplomatic Corps the Department would wish to receive a complete text of the protocol or other instrument by which the arrangements are made. In this connection it may be necessary, depending upon the character of the agreement which may be concluded, to furnish you with full powers to sign on behalf of this Government. In this connection the Department would also have to consider whether any agreement which may be made was of such a nature as to require the advice and consent of the Senate to ratification. Very truly yours, 15 See footnote 9, p. 221. W. R. CASTLE, JR. 751.842/24 The Acting Secretary of State to the Chargé in Great Britain (Atherton) No. 875 16 WASHINGTON, July 28, 1931. SIR: The receipt is acknowledged of your despatch No. 2011 of June 11, 1931,1o enclosing a copy of a note dated June 10, 1931, from the British Foreign Office with regard to the proposed modification of Articles three and seven of the Franco-Ethiopian Treaty of January 10, 1908. You may inform the Foreign Office that the Department concurs in its views with respect to the desirability of modifying the treaty along the lines suggested in its note of June 10, 1931, and that appropriate instructions to that end have been issued to the American Minister Resident at Addis Ababa. For your information there is enclosed a copy of the Department's instruction of this date to the Minister Resident.17 Very truly yours, 884.512 Consumption/24 W. R. CASTLE, Jr. The Acting Secretary of State to the Chargé in Great Britain No. 880 (Atherton) WASHINGTON, August 1, 1931. The Acting Secretary of State refers to the Embassy's despatch No. 2011 of June 11, 1931,16 transmitting a copy of a note dated June 10, 1931, from the Foreign Office with regard to the proposed modification of the Franco-Ethiopian Treaty of January 10, 1908, and encloses a copy of despatch No. 748 of June 22, 1931, from the American Minister Resident at Addis Ababa 18 in further reference to this subject. It will be observed from the last mentioned despatch that the British Minister at Addis Ababa has informed the Minister Resident that his Government has adopted a new attitude toward this matter, which in some respects appears to be inconsistent with its position as set forth in the Foreign Office note of June 10, 1931. The Acting Secretary of State would be glad to receive any information which may be available regarding the new attitude which the British Government is reported to have adopted. [File copy not signed] 884.512 Consumption/29 The Minister in Ethiopia (Southard) to the Acting Secretary No. 776 of State ADDIS ABABA, August 1, 1931. [Received September 2.] SIR: I have the honor to refer to the intention of the British, French and Italian Legations in Addis Ababa to protest to the Ethiopian Government against the recently promulgated excise tax law as a violation of the Franco-Ethiopian (Klobukowsky) Treaty of January 10th, 1908. Various reports have been made to the Department on this general subject. My three colleagues have now decided upon the form of a note to be addressed to the Ethiopian Government by the Diplomatic Corps as a body if agreement to that end can be procured. If agreement is not possible the three propose to send the note over their own signatures. Various meetings of the Diplomatic Corps have occurred and my German and Belgian colleagues have reluctantly agreed to adhere to the note. My five colleagues have urged upon me to join and I have informed them that my instructions are (Department's telegram No. 8 of May 7th, 1931) not to protest the excise tax law. However, as a result of their urging, and as a usual courtesy to their wishes, I am sending herewith a copy of the proposed note of protest 19 with a request for either a confirmation of my original instructions or for such amended instructions as the Department may desire to give. The note has, for purposes of greater accuracy, been left in the French as originally drafted. I may say that my British, French and Italian colleagues are the most active in this movement. The German and Belgian representatives are not enthusiastic, but appear to have instructions permitting them in their discretion to join in a protest should the majority of the Corps be in favor. These two have been now persuaded at least temporarily to adhere to the note, although I am of the opinion that the Belgian at least will withdraw unless I am authorized to join in the protest. In a previous report the Legation indicated that the British, French and Italian Ministers proposed to procure authorization from their respective governments to threaten reprisals in the event of a rebuff from the Ethiopians in response to the protest. My British colleague says that his Government has declined to promise such authorization. My Italian and French colleagues say that their respective Governments have reserved decision until developments require it to be made. 19 Not printed. |
