File No. 893.512/31.
The Secretary of State to Minister Reinsch.
Washington , May 4, 1914 .
Sir: The Department is in receipt of your despatch No. 149 of March 10, 1914, enclosing translation of the new Chinese stamp-tax law. Your observations on the subject have been read with interest.
The Department is of opinion that a stamp-tax upon bills of lading, shipping company’s receipts, consignee’s receipts and other documents relating to imported or exported goods is technically a contravention of the letter of the treaties since the stamp duty will slightly increase the tariff duty, but the Department does not believe that the treaty commissioners, when stipulating that the payment of import duties and commutation transit tax or half-duty should exempt [Page 123] the goods from all further inland charges whatsoever and that “exports having paid transit tax should be exempt from all internal taxes, imposts, duties, likin, charges and exactions of every nature and kind whatsover saving only export duties,” had in mind the levy of a stamp duty upon the shipping papers, but referred only to duties under a variety of names upon the goods themselves.
This Government is, therefore, disposed to consent to the collection of these taxes from American citizens, provided the other foreign governments assent to the tax.
In the event that the other treaty powers consent, you will, in accordance with the suggestions made in your despatch under acknowledgment, endeavor to secure such a revision of the regulations as may seem advisable to make them more acceptable to American citizens in China. In notifying the Chinese Government of this Government’s assent in principle to the proposed taxes, it should be stipulated that they shall not be increased beyond the rates fixed in the proposed tariff of stamp duties without the consent of this Government.
I am [etc.]