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the payment of the arrears of the temettu tax due for the financial year 1922-23, notwithstanding the provisions of Article 69 (Economic Clauses).

I avail, &c.

M. ISMET.

His Excellency Sir Horace Rumbold,
Delegate to His Britannic Majesty at the Peace Conference,

&c.,

Your Excellency,

&c.,

&c.

Lausanne, July 24, 1923.

I have the honor to acknowledge the receipt of the letter which your Excellency has been so good as to address to me today confirming, in accordance with the arrangement made between the delegations concerned, that the Turkish Government will take the necessary measures in order that the Allied nationals who suffered from the Smyrna fire may be exempted from the payment of the arrears of the temettu tax due for the financial year 1922-1923, notwithstanding the provisions of Article 69 (Economic Clauses).

His Excellency General Ismet Pasha,

President of the Turkish Delegation,
&c.,
&c.,
&c.

I avail, &c.

HORACE RUMBOLD.

Letter addressed by the delegates of the three inviting Powers to Ismet Pasha in connection with the suppression of Article 70 of the original draft treaty of peace (financial operations of the Council of the Ottoman Debt since the 30th October, 1918)

M. le Président,

Lausanne, July 23, 1923.

At the last meeting of the Second Committee, it was agreed between us that Article 70 of the former draft treaty, regarding certain financial operations carried out at Constantinople after the 30th October, 1918, should be suppressed, and replaced by a letter addressed by your Excellency to the Council of the Debt, a letter the receipt of which the latter was to have acknowledged and with which it was to have notified its agreement. We had also reached agreement with your Excellency on the draft letter to be addressed to the Council, a copy of which you have communicated to us.1

1 The following was to have been the text of the draft letter referred to:

Draft letter to be addressed by the Turkish Government to the Council of the Ottoman Public

Debt (to replace Article 70 of the draft treaty of January 31)

The payments which have been effected since the 30th October, 1918, up to the date of the present letter by the establishments entrusted with the service of the loans of the Ottoman Public Debt, in respect of the coupons due on the Unified Debt and on the other loans as well as on the Lots turcs drawn for payment, shall not be further contested in any way by the Turkish Government.

We regret to have to inform your Excellency that it appears from correspondence exchanged with the President of the Council of the Debt that the draft agreed upon here presents certain difficulties from the point of view of the Council. As there is not sufficient time to settle these difficulties before the signature of the treaty, we propose to your Excellency that the question of the letters to be exchanged between the Government and the Council of the Debt should be left over for subsequent settlement. It should be clearly understood that in making this proposal we do not wish in any way to go back on the agreement to suppress Article 70 of the former draft treaty, and that we adhere to the principles on which the draft letter which we had agreed upon was based, that is, that the validity of the operations in question will not be disputed, but that, on the other hand, they are not to be regarded as constituting a precedent in so far as concerns the currency in which payments are to be made.

PELLÉ

We avail, &c.

HORACE RUMBOLD G. C. MONTAGNA.

His Excellency General Ismet Pasha,

President of the Turkish Delegation,
&c.,
&c.,
&c.

Letters exchanged between Ismet Pasha and Sir H. Rumbold respecting the treatment to be accorded by the Turkish Government to British religious, scholastic and medical establishments and charitable institutions in Turkey

Your Excellency,

Lausanne, July 24, 1923.

With reference to the convention regarding the conditions of residence and business signed at Lausanne today, and following on the decision taken by the First Committee at its meeting of the 19th May, 1923, regarding the substitution of the declaration, which was to have been annexed to the said convention, by an exchange of letters, I have the honor to declare, in the name of my government, that the latter will recognize the existence of British religious, scholastic and medical establishments, as well as of charitable institutions recognized as existing in Turkey before the 30th October, 1914, and that it will favorably examine the case of other similar British institutions actually existing in Turkey at the date of the treaty of peace signed today, with a view to regularize their position.

The payments, encashments and settlements of account effected since the 30th October, 1918, up to the date of the present letter, in accordance with the agreement concluded between the Council of the Ottoman Public Debt and the Constantinople Government in regard to the portion payable to the Ottoman Public Debt of the customs revenues (customs surtaxes) in consequence of the application of the specific tariffs, are recognized as valid.

It is understood that the operations referred to in the present letter must not be considered as forming a precedent in regard to future payments.

The establishments and institutions mentioned above will, as regards fiscal charges of every kind, be treated on a footing of equality with similar Turkish establishments and institutions, and will be subject to the administrative arrangements of a public character, as well as to the laws and regulations, governing the latter. It is, however, understood that the Turkish Government will take into account the conditions under which these establishments carry on their work, and, in so far as schools are concerned, the practical organization of their teaching arrangements.

I avail, &c.

M. ISMET.

His Excellency Sir Horace Rumbold,
Delegate of His Britannic Majesty at the Peace Conference,

&c.,

M. le Président,

&c.,

&c.

Lausanne, July 24, 1923.

I have the honor to acknowledge the receipt of the letter which your Excellency has been good enough to address to me today in accordance with the agreement reached between the delegations concerned, in regard to the treatment to be accorded by the Turkish Government to British religious, scholastic and medical establishments in Turkey.

I avail myself, &c.

HORACE RUMBOLD.

His Excellency General Ismet Pasha,

President of the Turkish Delegation,
&c.,
&c.,
&c.

Lausanne, July 24, 1923.

Letters exchanged between Ismet Pasha and Sir H. Rumbold respecting cabotage1
Your Excellency,
With reference to Article 9 of the Commercial Convention signed at
Lausanne on today's date, I hasten to inform your Excellency of what
follows:

The Turkish Government, having decided to reserve cabotage trade to the national flag, has the honor to inform your Excellency that it agrees that the concerns mentioned below, which have hitherto carried on regular services in Turkish waters, should undertake in Turkey the transport of goods and passengers from one port to another; and it is prepared to negotiate with these concerns the conditions under which they may eventually be authorized to continue such traffic, for such period as may be provided for in any contract which they may conclude with the Turkish Government. If, within a period of six months from the 1st January, 1924, these negotiations should not have led to an agreement, the said concerns would only be entitled to carry on their activities under present conditions for a further period of two years.

1 Shipping trade from one port to another of the same state.

The concerns referred to above as benefiting by this arrangement will be the following:

The Khedivial Mail Steamship and Graving Dock Company (Limited).
M. and J. Constant.

Ellerman Line (Limited).

The vessels of Turkish concerns which at the present time are engaged in cabotage trade in Turkey shall enjoy reciprocal treatment on the coasts of Great Britain.

I beg your Excellency to be so good as to inform me of the agreement of your Government, and I avail, &c.

His Excellency Sir Horace Rumbold,

M. ISMET.

Delegate of His Britannic Majesty at the Peace Conference,

&c.,

Your Excellency,

&c.

&c.

Lausanne, July 24, 1923.

I have the honor to acknowledge the receipt of the letter of today's date which your Excellency has been so good as to address to me regarding cabotage trade. In taking note, in the name of my government, of the contents of the said letter, I hasten to inform you that we are in agreement both in regard to the conditions under which the cabotage services of the three British shipping concerns mentioned in your letter are to be carried on, and in regard to the reciprocal conditions to be granted on the coasts of Great Britain, to the vessels of Turkish concerns which at the present date are engaged in cabotage trade in Turkey.

His Excellency General Ismet Pasha,

President of the Turkish Delegation,
&c.,
&c.,
&c.

I avail, &c.

HORACE RUMBOLD.

Letter addressed by Ismet Pasha to Sir H. Rumbold, enclosing copy of letter sent by Ismet Pasha to Sir W. G. Armstrong, Whitworth and Co. and Messrs. Vickers, Limited; together with copy of acknowledgment sent by Sir H. Rumbold

Your Excellency,

Lausanne, July 24, 1923.

I have the honor to transmit to you herewith a copy of the letter which I have addressed today to the Chairman of Messrs. Armstrong, Whitworth and Co., Limited, and Messrs. Vickers, Limited.

I avail myself, &c.

His Excellency Sir Horace Rumbold,

M. ISMET.

Delegate of His Britannic Majesty at the Peace Conference,

[blocks in formation]

M. le Président,

[Enclosure]

Lausanne, July 24, 1923.

In the name of the Minister of Public Works of the Government of the

Grand National Assembly of Turkey, and with reference to the provisions regarding Messrs. Armstrong, Whitworth and Co., Limited, and Vickers, Limited, appearing in Article 2 of the Protocol of to-day's date concerning concessions, I have the honor to inform you of the following:

It is understood that if, within a period of five years from the date of the signature of the treaty of peace, the Turkish Government should propose either partially or completely to carry out the construction or to assure the working, by contracts to be concluded subsequently to the date in question, of the undertakings provided for in the conventions specified [in the aforementioned protocol], by inviting the coöperation of foreign industry or capital, the Turkish Government would advise the above-mentioned companies, and will put them in a position to compete on a footing of complete equality with any other person or company.

To the Chairman of

I avail myself, &c.
M. ISMET.

Messrs. Armstrong, Whitworth and Co., Limited,
and Messrs. Vickers, Limited, London.

M. le Président,

Lausanne, July 24, 1923.

I have the honor to acknowledge the receipt of the letter which your Excellency has been good enough to address to me today, enclosing a copy of the letter of the same date addressed by your Excellency, in accordance with the agreement reached between us, to Sir W. G. Armstrong, Whitworth and Co., and to Messrs. Vickers, Limited.

His Excellency General Ismet Pasha,

President of the Turkish Delegation,
&c.,
&c.,
&c.

I avail myself, &c.

HORACE RUMBOLD.

Letter addressed by the Turkish Delegation to the President of the Third Committee in regard to certain railway and port concessions in Turkey

Your Excellency,

Lausanne, July 24, 1923.

I have the honor to inform you that the concession contracts, as well as the subsequent agreements referring thereto, duly concluded before the 29th October, 1914, with the Ottoman Government in regard to the following undertakings are maintained: Anatolian Railway, Bagdad Railway, Mersina-Adana Railway, Oriental Railways and Haidar-Pasha harbor. The clauses of the said contracts and agreements will, within a period of

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