sing the indirect taxation is bringing
about the increase of direct taxes, and therefore makes the burden on
the Ottoman tax-payers all the heavier. The fact that foreigners who
enjoy in the Ottoman Empire every protection and every privilege as
well as freedom in their business transactions are exempt from
taxation constitutes in itself an intolerable injustice and creates at
the same time a situation detrimental to the independence and prestige
of the Government.

While the Imperial Government was firm in its resolution to continue
its efforts regarding the reforms, the general war broke and increased
the financial difficulties of the country in such a degree that all
the innovations and all the reforms which have been decided upon and
actually begun are threatened to remain without effect.

The Sublime Porte feels convinced that the only way toward salvation
for the Ottoman Government lies in the realization of the necessary
reforms in the least possible time. In the same way the Porte feels
that every encouragement will be shown her in the decisive steps to be
undertaken for this end.

Convinced of this, the Imperial Government has decided to abolish, on
Oct. 1, 1914, the capitulations, and all conventions, concessions, and
privileges emanating therefrom, which have become an iron ring around
the State, making it impossible for it to progress.

At the same time the Ottoman Government engages to treat with foreign
countries in accordance with the rules of international law. While I
have the honor of communicating to your Excellency this decision,
which opens a new and happy era in the life of the Ottoman Empire, an
event which undoubtedly will please your Excellency, I consider it my
duty to add that the Porte in abolishing the capitulations does not
harbor any hostile feeling against any of the foreign States, but is
acting solely in the highest interests of the empire. At the same
time, the Porte is ready to begin pourparlers for the conclusion of
commercial treaties in accordance with the principles of international
law.

_The Turkish press made little mention of the manner in which Europe
took notice of the important step taken by the Porte, and the
Ministerial Tasfiri Efkiar was the only one to express the feelings of
the Government on this occasion, saying:_

It is not proper for us to expect a unanimous and speedy satisfaction
from all the European powers; but, on the other hand, we must welcome
every