893.512/700: Telegram
The Chargé in China (Mayer) to the Secretary of State
[Received October 22—11 a.m.]
943. 1. Following from consul general at Hankow:
“October 17, 4 p.m. Since I am likely to be confronted at any time with the same question, at least in principle, I should like to be informed of the Department’s policy, as recently communicated to Cunningham, concerning the payment of taxes on liquors and tobacco, especially the two and a half and five percent surtaxes. Local oil companies state that they will probably shortly discontinue the payment of the $1 per unit special tax on kerosene now being imposed. I should like to know what course I am expected to pursue here in enabling American concerns to get possession of their goods in case the Chinese authorities decline to free them on the refusal of the companies to pay this special tax and the surtaxes referred to in the first paragraph of this message.”
I replied as follows:
“October 19, 6 p.m. Prior to acting upon your 200, October 17, 4 p.m., I desire your opinion as to practicability of applying Shanghai procedure at Hankow.”
I am now in receipt of following from Butrick:70
“October 20, 5 p.m. Your 91, October 19, 6 p.m. I assume Mr. Lockhart’s knowledge of Shanghai procedure to be based upon newspaper reports and I also am given to understand by businessmen here that Shanghai procedure has resulted in litigation, the outcome of which is not known to me. Nearly all warehouses here are in Chinese territory so that delivery of goods could be forcibly prevented if local authorities so desired, or goods could be seized and held for taxes after delivery from warehouses or oil installations in which case, if consular protest was of no avail, taxes would probably have to be paid under protest, if indeed fines also were not exacted.
The particular concern at this time is the attitude which should be assumed by this office toward the discontinuance of the $1 per unit special tax on kerosene now in use paid to the exclusion of surtaxes and transit taxes on kerosene.”
2. Department’s instruction in the premises respectfully requested.
- Richard P. Butrick, consul in charge at Hankow during short absence of Consul General Lockhart.↩