§ THE EARL OF MAYO rose to ask His Majesty's Government whether it is true that the Tunisian Government, by the Decree of the 22nd of February, 1919, has imposed a tax on the resale of all property in the Regency of Tunis to foreigners by Tunisian or French subjects, and that this tax will not be imposed on any sale of property as between French subjects and French subjects or Tunisian and Tunisian subjects, or French and Tunisian subjects, therefore placing all British subjects who may wish for business or commercial reasons to acquire any property in the Regency of Tunis in a disadvantageous position as compared with French and Tunisian subjects.
§ The noble Earl said: My Lords, this Decree institutes a tax on all property sold by a French or Tunisian subject to the subject of any other nation. The Decree commences by stating that it was on the advice of the Conférence Consultative that this tax was imposed. I should like to 1061 explain to the Government and your Lordships what the Conférence Consultative is. It is not an elective or even a representative body. The members are chosen by the French Minister Resident General, and can be considered in no way independent. I am told that when the question of this new tax was before the Conférence a member remarked that this tax was not likely to bring in much revenue. He was informed that the tax was not being instituted for fiscal but for national resources. The discussion was then dropped.
§ It must be remembered that the principal owners of land in Tunis are Arabs and Mahomedans. It is a great surprise to them that, in spite of the cordial relations which they have been led to believe exist between England and France, a Beyical Decree should have been issued and countersigned by the French Minister Resident imposing what, from their point of view, they look upon as a fine on them if they sell any property to a British subject.
§ The manner in which this tax has been brought forward is most dangerous, and it has formed a precedent which the French may invoke in other countries under their domination or which may come under their domination, especially where the system of government is that of a protectorate. If this tax is imposed it will be a serious impediment to any trade or commercial interest that England may hope to obtain in the Regency of Tunis. If a firm of British merchants wish to establish their business there and send representatives to Tunis for the purpose of acquiring property for the purpose of the business they will find this tax, to be levied by the Tunisian Government, placing them at the outset in a very disadvantageous position as compared with a French firm. A British firm would hardly be encouraged to start any business in the Regency.
§ It has been said that this tax has been levied more especially to prevent Italian subjects coming to the Regency of Tunis. Whether this is so or not the fact remains that British interests, as well as Italian interests, will be affected. The Italians, I imagine, are quite equal to defending their own rights. But I wonder what our Allies would think supposing they wished to come here and buy property in the British Isles and were told that if they 1062 bought property they would be specially taxed because they had bought the property. That is what has occurred to me in this matter.
§ Our relations with the French are most cordial, but I do not suppose anybody outside the Foreign Office knows anything of this matter. The Foreign Office may have had a report from our Consul-General at Tunis upon it, and I think it should be brought forward in public in order that our interests should be protected. I hope that there will be some explanation as to what the Government propose to do in the matter. It would be out of the question that we should retaliate; that is unthinkable. But with regard to the prospects of increasing our trade all over the world I think it is, to put it mildly, rather a strong order that the French should promulgate this decree without any one knowing anything about it.
§ THE CONTROLLER OF THE PRISONERS OF WAR DEPARTMENT (LORD NEWTON)My Lords, as the Lord President of the Council has an important engagement elsewhere. perhaps the noble Earl will allow me to answer the Question on his behalf. The facts are as stated by the noble Earl, and I am quite prepared to accept all that he has said. It is extremely doubtful whether we have any real grounds for protest, because although we enjoy, technically, "most-favoured-nation" treatment in Tunis, that does not comprise the treatment which is enjoyed by France; and, moreover, as the tax technically is imposed on the French or Tunisian vendor, and not on the foreign purchaser, the French Government may very well contend that we cannot prevent them taxing their own nationals.
The noble Earl made some allusion to the position of the Italians in Tunis, and, as he is well aware, Italian interests are considerably more important than British interests in Tunis. There are a far larger number of Italian subjects settled in Tunis than there are British. His Majesty's Government have been in communication with the Italian Government, and, in spite of the much greater interest which this question possesses for Italy, it appears that the Italian Government do not contemplate taking any action with regard to the action of the French Government.