893.512/700: Telegram

The Secretary of State to the Chargé in China (Mayer)

369. Your 943, October 22, 1 p.m.

1.
Situation described in Hankow’s telegrams would appear to parallel situation described as existing at Canton in your telegrams 914, October 7, 9 p.m., and 926, October 13, 6 p.m., and it would therefore appear to the Department that the procedure under which certain American goods are being released from warehouses in Shanghai could not be followed at Hankow without force which, as you know, this Government is not prepared to use. Department of course has no objection to your communicating to Hankow, for its information, exchanges of telegrams which explain situation at Shanghai.
2.
Department is interested in following statement quoted from Hankow’s telegram of October 20, 5 p.m., “I also am given to understand by business men here that Shanghai procedure has resulted in litigation.” Department desires information as to any litigation which may have arisen at Shanghai as the result of procedure there.
3.
As regards the general attitude which the Consulate General at Hankow should adopt toward taxes which are imposed contrary to the treaties, Department suggests that you instruct Hankow in accordance with its telegram 270, July 1, 5 p.m.
4.
The Department is not clear as to the status of the $1 per unit special tax on kerosene mentioned in Hankow’s telegram of October 20, 5 p.m. Department desires more information concerning this tax, by whom it is collected, the conditions under which it is collected and any other material information available before making any decision as to the attitude which the Consulate General should adopt. More specifically, the Department would like to know whether this tax is the result of private arrangement between the oil companies and the local authorities.
Kellogg