893.512/722: Telegram
The Chargé in China (Mayer) to the Secretary of State
[Received December 2—3:55 p.m.]
1061. 1. The following from American consul at Shanghai:
“November 23, 5 p.m. Under date of November 8 the Bureau of Duty Stamps for Kiangsu informed the Shanghai Insurance Association that an office ‘for sale of stamps and investigations’ had been established. That the scale of stamps duty on insurance policies as provided in the stamp act of 1912 and 1914 having been approved by the Nationalist Government, it would be enforced throughout China. In response to an inquiry from an American in the city I have again stated that while the tax had not been approved by the United States Government, American companies must decide whether on grounds of expediency Chinese brokers and agents should be given permission to purchase and affix the stamps required. Characteristically Chinese the bureau is endeavoring to induce American companies to make advance purchases large supply stamps. For rate see Chinese Tear Book, 1926, page 488.”
2. In reply I have approved his statement and sent for Cunningham’s information the following extract from a communication from the Senior Minister to the Senior Consul at Chefoo:
“... the question of affixing stamps to commercial documents relating to transactions between foreign businessmen and Chinese is one which should be left to the interested parties to settle. It is estimated [Page 429] that, in view of the existing relations, the Chinese may wish to have these documents stamped in order to make valid according to the laws of the country; and it seems to my honorable colleagues that the foreign merchant has to decide himself in each individual case in what way he deems it expedient to comply with these wishes.”