66 By Article III. of the consular convention with Italy of 1878, consular officers, citizens of the state by which they are appointed, are exempt from all national, state or municipal taxes, imposed upon persons either in the nature of capitation tax or in respect to their property unless such taxes become due on account of the possession of real estate or for interest on capital invested in the state in which they reside. If they are engaged in trade, manufactures or commerce, they shall not enjoy such exemption but shall be obliged to pay the same taxes as are paid by other foreigners under similar circumstances.” By Article X. of the treaty between the United States and Portugal of 1840, each party engages to give to consuls appointed by the other most-favored nation treatment. Hence it was advised that the Portuguese vice-consul at New York, whose residence was in New Jersey, was entitled to exemption in the latter State from (1) a capitation or poll tax, and (2) a tax on his personal property, unless it became due for interest on capital invested in the State of his residence, New Jersey. Mr. Day, Assist, Sec. of State, to the governor of New Jersey, Jan. 31, 1898, 225 MS. Dom. Let. 89. With reference to a note of the minister of Austria-Hungary of January 26, 1898, concerning the Austrian income tax law which took effect on the first of the year, and the treaty between the two countries of July 11, 1870, the Department of State said: "The interpretation placed by this Department on the treaty corresponds with that suggested in your note, namely, that where consuls are citizens of the country which has appointed them and are owners of real estate in the country to which they are accredited, they are subject to taxation on their real and personal property, which would include the tax on their houses and on their incomes derived from mortgages on property situated in the country where they exercise their consular functions. So far as this Department is informed, the practice in the various. States composing the United States is in harmony with this interpretation of the treaty." Mr. Sherman, Sec. of State, to Mr. Hengelmüller, Austro-Hungarian min., See, as to treaty stipulations, Consular Regulations of the U. S. (1896), By Article III. of the consular convention between the United States and Germany, of December 11, 1871, it is provided that under no circumstances shall the "official income" of consular officers be subject to any tax. By the German law relating to insurance against disability and old age, all persons working in a dependent position, on regular wages that do not exceed a certain amount per annum, are required to insure themselves against certain liabilities, the insurance to be effected by means of stamps pasted on cards, one half the cost of the stamps being paid by the employer and the other half by the employee. The American consuls in Germany submitted themselves to the law, in respect of their German employees, it being for the advantage of the latter. In 1901, however, a question was raised by the United States consul at Breslau in respect of two German subjects employed by him, one as secretary and the other as messenger, the consul claiming that neither he nor they could be obliged to pay the tax. The German authorities, on the other hand, considered it doubtful if the consul was freed by the treaty from the obligation to contribute toward the payment for the stamps, and besides intimated that, if the two employees were to be considered as American officials, they were not entitled to any pension under the law. The foreign office therefore requested the American embassy to use its good offices in the case to the end that the two German subjects in question might not be deprived of advantages which would accrue to them if they were in other employ. It seems that there had always been uncertainties as to the exact meaning of Article III. of the convention of 1871, in so far as it related to consular officers and employees of German nationality, but that the general practice had been to exempt them from taxation. This, however, had not been done in pursuance of any formal decision, and, if the question was made one of principle, it seemed not improbable that the German employees of the American consulates would be held to be liable to local taxation. The Department of State held that under the provisions of Article III. the consul at Breslau, not being a German subject, was exempt from the payment of the tax in question, but that this exemption could not be claimed for the secretary and messenger of the consulate who were German subjects; and that, as the members of the embassy at Berlin and the United States consular officers generally throughout the German Empire had voluntarily submitted themselves and their employees to the provisions of the insurance law, the consul at Breslau should be advised to follow the same course, as it was to the advantage of his employees. It was observed that he could undoubtedly so arrange that they should bear the payment of the quota of the contribution which he was asked to pay. Mr. Hill, Act. Sec. of State, to Mr. White, ambass. to Germany, Apr. 30, 1901, For. Rel. 1901, 173, acknowledging despatch No. 1604 of Mr. Jackson, chargé, to Mr. Hay, Sec. of State, Apr. 13, 1901, For. Rel. 1901, 172. (2) CUSTOMS DUTIES. § 716. It is not usual to allow to consuls the right of free entry for goods sent to them for their personal use; though in some countries this privilege is granted as a matter of courtesy. Mr. Bayard, Sec. of State, to Mr. Cox, Nov. 6, 1885, MS. Inst. Turkey, IV. 305. Article II. of the treaty between the United States and AustriaHungary of 1870, in exempting consuls from all direct and personal taxation, refers to all kinds of assessments, forced loans, income and capitation taxes, and other charges levied by the general or local government upon the individual, distinct from property taxes or duties by reason of transactions in which he may engage in the place of his residence. It does not refer to customs duties upon importations collected by the general government, nor to municipal duties on articles of consumption, commonly called octroi duties, nor to excise taxes, stamp charges, and the like. Mr. Bayard, Sec. of State, to Mr. Lee, chargé, No. 16, Nov. 6, 1885, MS. Although exemption from stamp taxes on paper used officially by consuls Article III. of the treaty between the United States and the German Empire of 1871 does not exempt consuls from payment of customs duties on importations. Mr. Rives, Assist. Sec. of State, to Mr. Smith, No. 100, Jan. 3, 1889, 128 66 By Article XVII. of the treaty between the United States and Tunis of 1797, each party is "at liberty to establish a consul in the dependencies of the other: " and this consul is entitled to “ import for his own use all his provisions and furniture without paying any duty." In 1895 the Tunisan minister of foreign affairs, who was also the French minister resident, notified the vice-consul of the United States that the government of Tunis intended to suppress all privileges, honors, and prerogatives granted to the consuls by treaties, except in the case of salaried officers. As the vice-consul was an unsalaried officer, the United States, March 12, 1895, declared that in conformity with the rule generally observed, which made no discrimination between salaried and unsalaried consular officers of foreign states, it could not acquiesce in any differential treatment of its consular officers abroad "based upon a mere detail of financial relation between this government and its agent, which in no manner concerns the agent's relation to the government to which he is accredited and from which he receives his exequatur." The French government subsequently stated that the object which the Tunisan government had in view was the withdrawal of the custom-house franchise from consular agents engaged in business. The United States, besides reaffirming its position that neither the treaty nor usage made any distinction between salaried and unsalaried consular officers, replied that it was perfectly compatible with a consular officer's duties as such that he be permitted to engage in trade, and that the practice was generally recognized among nations; that vice-consuls, as a rule, were resident merchants, and even officers of the regular consular career receiving salaries below a stated amount were permitted to engage in business apart from their office and subject to the laws. governing trade, and that the United States would insist on similar treatment for its consular agent to that accorded to "consuls de carrière." Mr. Uhl, Act. Sec. of State, to Mr. Vignaud, chargé at Paris, March 12, 1895, For. Rel. 1895, I. 414; Mr. Olney, Sec. of State, to Mr. Eustis, amb. to France, June 17, 1895, and Dec. 7, 1895, id. 419, 422. "In no event could a consular uniform, which is the personal property of the individual, be included in the term consular supplies,' which are the property of the government. The case is different with flags and coats-of-arms, which belong to the government, are by the consular officer turned over to his successor." and Mr. Moore, Assist. Sec. of State, to Mr. Cafiero, May 11, 1898, MS. Notes to For. Consuls, IV. 413. "In explanation of my statement in my aforesaid note [of June 5] to the effect that consular officers are not accorded the privilege of free entry, I have to say that on the arrival of consular officers in this country free entry is allowed of their personal and household effects, as in the case of ordinary passengers; but, under the regulations of the Treasury Department, they have not the right after arrival in this country, as in the case of ambassadors and ministers, to import supplies, &c., free of duty. The fact that Signor Tosti [Italian viceconsul at New York] failed to import his household effects for his permanent establishment here on the occasion of his first arrival in this country in his official capacity of vice-consul, is no bar to the free importation now of such effects, provided they have been used abroad not less than one year, whether immediately preceding his arrival or not." Mr. Hay, Sec. of State, to Count Vinci, No. 489, June 8, 1899, MS. Notes to Italian Leg. IX. 362. "Article 476 of the Customs Regulations of the United States provides for the free entry in the United States of articles sent by a foreign government, for its use, to an agent in this country, on application through the Department of State. Under this article official supplies to foreign consular officers in the United States are admitted free of duty. "With a view of establishing Article 476 aforesaid upon a reciprocal basis, which would appear to be rightfully demanded, the Secretary of the Treasury desires to ascertain the course pursued in this respect towards United States consular officers by the different nations of the world having consular representatives in this country.“ Mr. Hill, Act. Sec. of State, to Dip. officers of the United States, circular, May 29, 1901, MS. Inst. Arg. Rep. XVII. 543. The following papers may be consulted with regard to the countries mentioned: Austria-Hungary: Mr. Bayard, Sec. of State, to Mr. Lee, No. 16, Nov. 6, Brazil: Mr. Sherman, Sec. of State, to Mr. Conger, No. 12, Aug. 7, 1897, Germany: Mr. Blaine, Sec. of State, to Mr. Everett, chargé, No. 255, Great Britain: Mr. Bayard, Sec. of State, to Mr. Phelps, min. to England, Italy: Mr. Bayard, Sec. of State, to Mr. Stallo, No. 23, April 3, 1886, MS. Japan: Treasury Department Circular, No. 184, Oct. 13, 1898. Russia: Mr. Adee, Act. Sec. of State, to Mr. Breckinridge, No. 93, July 6, Sweden and Norway: Mr. Bayard, Sec. of State, to Mr. Magee, No. 103, Venezuela: Treasury Dept. Circulars, Nos. 175 and 196, Sept. 26 and |