Papers Relating to the Foreign relations of the United States, 1927, Volume II

893.512/728: Telegram

The Minister in China (MacMurray) to the Secretary of State

Peking, December 12, 1927—11 a.m.
[Received 11 p.m.]

1080. Your 403, December 6, 4 p.m. was repeated today Shanghai but evidently had not yet been received when following was sent by him:

“December 9, 4 p.m. Referring to comment in my November 30, 9 a.m.,⁸¹ I have just been shown revised draft of Standard Oil Company’s agreement with Petroleum Tax Bureau and find it less favorable than earlier one.

2. Reference paragraph 2, agreement still makes no mention of shipments to this or other foreign concessions.

3. Reference paragraph 3, Petroleum Tax Bureau while taking care of likin station charges cannot control native customs stations within 50–li radius of Shanghai, Ningpo and Wenchow and supervised by Maritime Customs; and taxes levied by such stations must be paid by company irrespecive of new 60 cents, which latter tax alone will bring total duties and taxes up to approximately seventeen and one-half percent as opposed to reported twelve and one-half percent proposed by Tariff Commission. Signed agreement for payment of tax will be granted providing for excess of Tariff Commission. Proposal is made [most?] unfortunate since it is further abandonment of treaty rights by [apparent omission] governmental encroachments on company treaty rights.

4. Reference your December 3, 9 a.m.⁸² This consulate general has protested petroleum tax along general lines but holds Standard Oil Company protest in abeyance pending further instructions.”

MacMurray

81. See telegram No. 1063, Dec. 3, from the Chargé in China, p. 429.
82. See par. 2 of telegram No. 1063, Dec. 3, 9 a.m. from the Chargé in China to the Secretary, p. 430.