Office of the Historian

893.512/1548: Telegram

The Secretary of State to the Ambassador in Japan (Grew)

Washington, February 26, 1940—4 p.m.

70. Peiping’s 53, February 14, 11 a.m., and Canton’s February 9, 5 p.m., and February 17, 1 p.m.,61 special municipal tax on petroleum products. This tax appears to be contrary to the Chinese Government’s obligation under Annex 3 of the Sino-British Tariff Treaty of 192862 to abolish “likin, native customs duties, coast-trade duties and all other taxes on imported goods whether levied in transit or on arrival at destination.” It also appears that the tax is not recognized by the Chinese National Government, and is contrary to regulations of that Government, including several rulings stating specifically that no taxes in addition to Chinese Maritime Customs duties are to be collected on kerosene and gasoline. Consequently, the Department does not admit the right of any regime in China to impose such a tax.

In view of these considerations the Department concurs in the recommendations of Peiping and Canton and desires that, unless you perceive objection, you make appropriate representations to the Japanese Foreign Office in regard to this case.63

Sent to Tokyo via Peiping. Repeated to Canton and Chungking.

Hull
  1. None printed.↩
  2. Signed at Nanking, December 20, 1928, British and Foreign State Papers, vol. cxxviii, p. 284.↩
  3. The Ambassador in Japan made written representations to the Japanese Foreign Office on February 29. However, in despatch No. 112, December 18, to the Ambassador in China, copy of which was forwarded directly to the Department, the Consul General at Canton indicated that there appeared to be no improvement in the situation as of that date (893.512/1577).↩