Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 2, 1902

Mr. Buck to Mr. Hay.

United States Legation,
Tokyo, December 20, 1901.

No. 606.]

Sir: I have the honor to acknowledge the receipt of and to confirm the telegraphic instruction of the 18th instant.

I have notified United States Consul-General Bellows, at Yokohama, of the course to be taken by Americans of that city as directed by the instruction, and also our consuls at Kobe and Nagasaki, though no complaint from these cities in respect of the “house tax” or other taxes has yet been received.

In relation to this subject, I inclose a copy of a communication from me to Consul-General Bellows of date of October 31 last, giving my opinion upon the subject, having inadvertently omitted sending it as an inclosure with a previous dispatch.

While many foreigners, including Americans, in Yokohama still refuse to pay the “house tax,” though formal demands have been made upon them, no seizure of property has yet been made, which, possibly, may be somewhat due to a suggestion I made to the minister for foreign affairs some weeks ago, that such course be not taken before I had received further instruction, after the receipt at Washington and consideration by the Department of the decision of the Imperial Government upon the “house-tax” question, which decision I had forwarded. The minister, however, gave no assurance of delay in enforcing collection of taxes by distraining property.

In an interview with the minister for foreign affairs some time ago, I took the liberty to suggest arbitration of the questions at issue respecting the “house tax” and tax on incomes derived from property held by foreigners under leases in perpetuity, on the ground that such a course would satisfactorily settle all differences. I thought that, since the United States had not joined with other powers in protesting, the minister’s mind might be more open to a favorable consideration of such a suggestion from me than from some others, but I found him not willing to accede to such a proposal. He said that the representative of another power had already suggested that course and he had declined to consider it, as there was nothing in the case to justify recourse to arbitration, and that his colleagues in the cabinet fully agreed with him in that view.

I have, etc.,

A. E. Buck.

[Inclosure.]

Mr. Buck to Consul-General Bellows.

Legation of the United States,
Tokyo, October 31, 1901.

Sir: Referring to the note of his excellency the minister for foreign affairs, addressed to me on the 21st instant, a copy of which I forwarded to you by mail on the 24th instant, which announced the position taken by the Japanese Government respecting the tax on buildings erected upon property held under leases in perpetuity by foreigners in the former foreign settlement, and respecting the applicability of the income tax to incomes derived from such property, I think it well to say to American taxpayers who regard such taxes as unjust and violative of treaty provisions that, in paying such taxes as they are now compelled to do in order to avoid distraint upon their property, it might be for their interest to make protest and ask that their protests be acknowledged by the collector upon their receipts. That having been done, then, in event that the claims of certain powers that such taxes are in violation of treaty stipulations should prevail, they would have better ground perhaps to claim that such taxes paid by them should be refunded.

I have forwarded a copy of the note referred to to Washington for consideration and instruction, should our Government have any to give me.

I am, etc.,

A. E. Buck.