893.24/11432/11: Telegram
The Consul at Rangoon (Brady) to the Secretary of State
[Received 4:42 p.m.]
In reply to Department’s telegram of July 16, 11 p.m.
- 1.
- It is not likely that Ministry could be induced to abolish transit charges on materials regardless of nature or source except under pressure by the British Government.
- 2.
- Governor would consult London before taking action in an administrative matter of this kind. A decision to act regardless of opposition by Ministers might not cause a political crisis but it would result in political feeling and a reaction unfavorable to the Chinese.
- 3.
- Ministers would probably regard as unreasonable any suggestion that they economize in Burma in order to compensate for loss of revenue sustained by granting concessions to the Chinese.
Present situation is as follows: British head of Defense Department is endeavoring to have tonnage tax accepted by Ministry in place of ad valorem duty, and acceptance appears probable. Pie is also seeking to have rate of collection during at least 6 months based on past rate of income. Finance and Commerce Ministers desire that rate should be determined from time to time on the basis of prevailing increased values of materials. It is estimated that if this were done rate of income from China would be more than doubled and that payments for transit of materials now expected would reach a very large total. It appears that British interests would not permit increased rate of income.