CO129-503-8 Treatment of Asiatic British subjects by French Authorities in Indo-China 30-12-1926 - 20-10-1927 — Page 45

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FORSIGN OFFICE, 8.5.1.

February 10th, 1927.

I am directed by Secretary Sir Austen Chamberlain

to inform you that he has had under consideration your despatches Nos. 29, 30 and 31 of the 5th, 9th and 19th November last respectively, on the subject of discrimination sgainst foreigners in Indo-China.

2. While the action which you took, in common with some of your colleagues, in protesting on general grounds against the rates of taxation levied on foreign business firms is approved, I am to state that it will not be open to you, for the following reasons, to demand as of right that British firms be placed on a footing of equality with French firms.

The most favoured-nation clause in

the Anglo-French commercial treaty of 1882, and the clause in certain treaties concluded by France with other countries

6. Denmark) whereby national treatment is granted in matters of taxation, give British subjects in France the right to national treatment in such matters. As a result of the same clause in the treaty of 1882 and other treaty commitments of His Majesty's Goverment, all French citizens receive national treatment in this country insofar as taxation is concerned, The 1882 treaty does not, however, apply to the Colonies of either party and British subjects are consequently not entitled to national treatment in

Indo-China.

3. The Governor of Cochinchina, in his circular letter of the 16th November last, laid down that firme

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