No. 180.
Mr. Bayard
to Mr. Denby.
Washington, June 24, 1887.
Sir: I have received your No. 322, of February 25, 1887, inclosing a copy of your note to the yamên, protesting against the levy of the new lekin tax on kerosene of 6 mace (90 cents) per case. Your conclusion [Page 225] is, that the object of this tax being intended to prohibit the importation of kerosene, it is consequently forbidden by the treaties.
It is true that the question of what constitutes a prohibitive tax is one of fact, which can only be determined by the result. What actually stops importation is, of course, prohibitory; and a severe check to importation, through the imposition of an exorbitant tax, is much the same as an actual stoppage. While it may be difficult to say that the proposed tax is prohibitory of the importation of kerosene, the enormous duty is clearly open to energetic remonstrance, as conflicting with the intent of the treaties that no differential treatment should exist.
Your note is therefore approved.
I am, etc.,