893.512/1030
The Minister in China (Johnson) to the Consul General at Shanghai (Cunningham)5
Sir: The Legation has received your despatch No. 6462, of April 16, 1930, transmitting copies of an exchange of correspondence with the Liggett and Myers Tobacco Company6 concerning the exemption from advertising tax of native products. The Legation does not concur in the opinion set forth in the second paragraph of your letter of April 16, 1930, addressed to the Liggett and Myers Tobacco Company, since the contention of the American Government is that American goods are not liable to the payment of taxes other or higher than those levied on either Chinese goods or the goods of any foreign national. Since a tax on advertising is an indirect tax on the goods advertised, you should, if you find that the announcement transmitted to you by the Liggett and Myers Tobacco Company on April 12th is based on fact, protest against the discrimination against American goods and endeavor to secure for American concerns treatment as favorable as that accorded to any other foreign nationals, or to Chinese.
I am [etc.]
Counselor of Legation