Mr. Hill to Mr.
Buck.
Department of State,
Washington, April 12,
1902.
No. 399.]
Sir: I inclose herewith a copy of a memorandum
from the British embassy relative to the reference to arbitration of the
question of the Japanese Government’s right to the imposition of the
house tax in respect of buildings which are held under perpetual
lease.
The memorandum states that the reference is confined to the house tax
only, and that, in the opinion of His Majesty’s Government, the question
should be settled in all its bearings. Inquiry is made as to whether the
United States Government shares the view of His Majesty’s Government
that perpetual lease holders still enjoy the same immunities and
privileges as to taxes and other charges, imperial or otherwise, in
respect to their buildings as existed prior to the revision of the
treaties, and is disposed to instruct its representative at Tokyo to
support His Majesty’s representative in contending for the wider
reference.
I also inclose a copy of the Department’s memorandum in reply, in which
it is stated that in its opinion the scope of the reference should be
such as to include and settle all questions in controversy relative to
the imposition of charges and taxes of whatever style and character. It
has accordingly instructed the United States minister at Tokyo to make
proper representations to the Japanese Government in support of the view
that the question in all its bearings should be referred for final
settlement by the proposed arbitration.
You will act accordingly.
I am, etc.,
David J. Hill,
Acting Secretary.
[Inclosure 1.]
Lord Pauncefote
to Mr. Hay.
British Embassy,
Washington, April 8,
1902.
Dear Mr. Secretary: Being still prevented
by indisposition from leaving the house, I write to say that I have
just received a telegram from my Government respecting the taxation
of buildings held by foreigners in Japan.
It appears that the question is to be referred to arbitration, but
that the Japanese Government desire to limit the scope of the
reference, whereby the decision would lose much of its practical
value.
I inclose an explanatory memorandum, from which you will see that my
Government desire to know whether you are disposed to support them
in their efforts to obtain a wider reference.
I am, etc.,
[Page 710]
[Subinclosure.]
Memorandum.
The Japanese Government have agreed in principle to refer to
arbitration the question of their right to the imposition of the
house tax in respect of buildings which are held under perpetual
leases.
They thus confine the reference to the house tax only.
It is important, in the opinion of His Majesty’s Government, that the
question should now be settled in all its bearings. They contend
that the point at issue is whether or not perpetual leaseholders
still enjoy the same immunities and privileges as to taxes and other
charges, imperial or otherwise, in respect of their buildings, as
existed prior to the revision of the treaties.
His Majesty’s Government would be glad to learn that the United
States Government share their view in this matter and are disposed
to instruct their representative at Tokyo to support His Majesty’s
representative in contending for the wider reference.
British Embassy,
Washington, April 8,
1902.
[Inclosure 2.]
Mr. Hill to
Lord Pauncefote.
Department of State,
Washington, April 12,
1902.
Personal.]
My Dear Mr. Ambassador: I inclose a
memorandum in reply to the one inclosed with your personal note of
the 8th instant in regard to the proposed arbitration of the
question of the Japanese Government’s right to the imposition of the
house tax in respect of buildings which are held under perpetual
leases.
I am, etc.,
[Subinclosure.]
Memorandum.
The Government of the United States having been heretofore advised of
the proposed arbitration has expressed to the Japanese Government
its willingness to abide the result of the arbitration.
But the Department is of the opinion that the scope of the reference
should be such as to include and settle all questions in controversy
relative to the imposition of charges and taxes of whatever style
and character. It has accordingly instructed the United States
minister at Tokyo to make proper representations to the Japanese
Government in support of the view that the question in all its
bearings should be referred for final settlement by the proposed
arbitration.