761.91/97
The Secretary of State to the Minister in Persia (Kornfeld)
Sir: There are enclosed, for your strictly confidential information, copies of communications from the British Embassy under date of [Page 574] September 27th33 and October 25th, 192334 and the Department’s reply of January 21, 1924,35 dealing with the treaty between Russia and Persia signed at Turcomanchai in 1828 and with the present status of the rights of foreigners in Persia, particularly with reference to taxation.
In drafting the reply to the British Embassy’s communications the Department considered the recent correspondence from the Legation with regard to the imposition of new measures of taxation by the Persian authorities, particularly your despatches No. 231, August 5th; No. 225, July 25th and No. 205, July 6th, 1923.36 From these communications the Department understands that you joined certain of your colleagues in sending a note to the Persian Government,37 which in your despatches of July 25th and August 5th is variously referred to as having been sent on June 12, June 14 and June 22. This note contained a protest against the imposition of certain municipal taxes on nationals of states enjoying capitulatory rights. It would appear from other correspondence from the Legation that on May 18, 1923 the British Minister requested you to join in a further communication to the Persian Government reiterating the position taken in the note of June, 1922. In bringing the British Minister’s suggestion to the Department’s attention you requested definite instructions as to the course you should pursue.
It would not appear from the information before the Department that you joined your allied colleagues in any protest to the Persian Government on the subject of taxes subsequent to the note of June, 1922. If this Department’s impression on this point is not correct it is desired that on receipt of this instruction you telegraph fully whether you have participated in any further protest to the Persian Government and if so, the nature of such protest.
The Department’s general attitude in this matter is briefly set forth in the concluding paragraph of the note to the British Embassy, where it is indicated that this Government, “while solicitous to preserve the rights necessary to the proper protection of its citizens and interests in Persia, desires to avoid a course of action which would result in obstructing the efforts of the Persian Government to put its house in order and particularly to establish its finances on a sound basis.” The Department would therefore be inclined to follow a liberal policy in dealing with requests from the Persian Government for the right to collect reasonable taxes from American citizens, provided such taxes were accepted by the nationals of other Powers [Page 575] and were neither unduly severe nor inequitably imposed. But this does not signify that the United States is at present prepared to renounce its fundamental capitulatory rights in Persia. The Department accordingly desires you in each individual case where new taxes affecting Americans and other foreigners may be contemplated, to request the Department’s instructions before acquiescing in the levy of such new taxes.
In sending you the enclosed communications between the Department and the British Embassy, the Department desires to caution you that these communications are confidential and should not therefore be availed of in correspondence with the Persian Government, with your colleagues, or otherwise.
I am [etc.]