Office of the Historian

893.512/705: Telegram

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

Peking, November 7, 1927—4 p.m.
[Received 4:05 p.m.]

979. Your 369 October 26, noon, fourth paragraph. Following from consul at Hankow:

“November 5, 1 p.m.

1.
Legation’s 100, October 28, 1 p.m. The tax under discussion is the Nationalist Government tax reported to Legation in this consulate’s despatch number 237, April 27th, 1927.71 It is collected on all oils moving out of Hankow installations. Provincial authorities in Hunan and Honan are seeking to impose additional tax of $1 per unit on oils going into those Provinces but this taxation is not now under discussion.
2.
After exhaustion of its advance deposit, Standard Oil Company paid that tax up to October 28th. Company now seeks to obtain reduction of tax. In protest against tax, all oil companies ceased shipments from Hankow installations on October 30th and intend to fight tax vigorously if all companies can be held to continued cessation of shipments.
3.
It would appear that this consulate can properly protest only the applicability of tax to any transit pass shipments and take suitable occasion to bring informally before Chinese authorities injurious effect upon consumer of high oil taxation. I shall however await Legation’s instruction before taking any action.”

The Legation has informed Adams that his paragraph 3 is approved.

Mayer
  1. Not printed.↩