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136
ECONOMIC CONDITIONS
[No 60.

encouragement by the admission, free or under low duties, of necessary machinery and raw materials. Textiles, leather products, furniture, woodwork, and paper are among the highly taxed articles. The duties assigned are throughout maxima, which are subject to modification by special agreement.

(d) Commercial Treaties

The commercial and other privileges known as Capitulations, which in relation to Great Britain had existed since 1675, were abolished by the Turkish Government in 1914. Treaties of commerce arranged with the Capitulatory Powers in 1861-2 were subsequently denounced by Turkey, but without being formally renewed they continued to be followed tacitly. Negotiations entered into for new treaties were without result, except in the case of Germany, with whom an agreement was signed in 1890; a stipulation was, however, added that the provisions and tariff should not come into force without the consent of Germany unless they were applied to other countries also, and the treaty consequently remained in abeyance. A new treaty with Germany has now been made, together with further conventions, regulating the functions of Consuls and cther international matters, formerly governed by the Capitulations. With certain non-capitulatory Powers -Greece, Persia, Montenegro, Rumania, Serbia agreements were reached some years ago conceding most-favoured-nation treatment; and a treaty was made in 1896 with Japan under which Consuls were reciprocally established and the right given to free exchange of commerce. With Bulgaria relations of free trade have subsisted, except for certain goods defined by a convention of 1906, but previous arrangements have, for the most part, been nullified by the events of the past few years, and Turkey's relations with other countries will require a comprehensive readjustment after the war.