These regulations, adopted by the Porte on its own initiative, and considered entirely as privileges, and having been strengthened and made more general through certain acts, have continued to be in force up to this time under the name "Old Treaties," (in Turkish "Ouhout-i Atikah.") These privileges, however, are wholly incompatible with the legal status of recent years, and especially with the principle of national sovereignty. In the first place, they became a hindrance to the progress and development of the Imperial Government, while in the second, by creating misunderstandings in its relations with the foreign Governments, they formed a barrier preventing these relations from becoming more harmonious and more sincere. The Ottoman Empire continues to advance in the path of regeneration and of reforms, overleaping many obstacles, and in order to acquire the position due to it in the civilized family of Europe, it adopted modern principles of government, and has not deviated from its programme of having the State conducted on these principles. The founding of the constitutional form of government is in itself a proof that the efforts of the Ottoman Empire for its regeneration have been fully crowned with success. Certain exceptions, however, based on the capitulations, such as the participation of foreigners in the administration of justice, which is an all-important prerogative of national sovereignty, the limitations imposed on the legislative rights of the State, based on the argument that certain laws cannot be applied to foreigners, the injustice inflicted on common right from the impossibility of convicting a delinquent who disturbs the safety of the country merely because he happens to be a foreigner, or because the prosecution against him must be subjected to certain limitations and particular conditions; and likewise the difference in the competency of the various courts dealing with cases where the capitulations are involved; all these constitute impregnable barriers against every effort of the country toward progress in the administration of justice. From another point of view, the fact that foreigners living in the Ottoman Empire are exempt from taxation, in accordance with the capitulations, makes it impossible for the Sublime Porte to procure the indispensable means for the carrying out, not only of the reforms but of its everyday needs. The impossibility of increasing 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.