893.512/694: Telegram
The Chargé in China (Mayer) to the Secretary of State
Peking, October 11,
1927—7 p.m.
[Received October 14—10:50 a.m.]
[Received October 14—10:50 a.m.]
927. Following from consul general at Shanghai:
“189, October 11, 5 p.m.
- 1.
- Upon receipt of the Department’s October 1, 6 p.m., quoted in my telegram 183, October 3, noon, I called upon the Commissioner of Foreign Affairs and informed him that I proposed accepting treaty duties upon tobacco products and wine from now on imported by American citizens. It was emphasized that the American Government has been forced to this position in defense of its merchants and shippers. At that time he stated that a proposal for private arrangement was being considered to cover tobacco products.
- 2.
- As anticipated in paragraph 10 of my telegram No. 179 of September 26, 4 p.m.,66 such firm stand has brought about more [apparent omission] attitude on the part of Nanking Government and it has now notified tobacco companies directly of new regulations providing that “all rolled tobacco and all goods manufactured with tobacco leaf after paying Customs duty and two and a half percent surtax shall be taxed at twenty percent ad valorem from the date of promulgation and enforcement of these regulations to the [Page 422] end of the current calendar year” and at twenty-two and one-half in lieu of this twenty percent ad valorem for calculation of 1928 while rate of tax during and after 1929 “shall be fixed when the time arrives.” Goods so taxed are to be free from any other tax whatsoever. Regulations have not yet textually been made public.
- 3.
- American Tobacco Company’s addressed inquiries to this consulate general as to acceptance of such marked modification of tobacco tax as originally imposed but this consulate general refrained from any advices pro or con other than to observe that American Government had registered no objection to private agreements made by American companies with Wine and Tobacco Administration in 1821 [1921]. Leading American, British and Chinese tobacco companies have agreed to accept terms of new regulations in toto and official promulgation is momentarily expected.
- 4.
- Commissioner of Foreign Affairs has informed me that endeavor will be made to conclude similar arrangements in reference to wine tax but to my mind large number and diverse interests of importers of wines and liquors make success of such plan doubtful.”
Mayer