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

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.,

Pauncepote.

[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.,

David J. Hill.

[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.