File No. 893.512/40.
Chargé MacMurray to
the Secretary of State.
No. 366.]
American Legation,
Peking,
September 12, 1914.
Sir: With reference to the note of the Wuhu
Commissioner for Foreign Affairs, transmitting to the American Consul at
Nanking certain regulations with regard to the proposed imposition of a
tax on tobacco and wines in the Province of Anhui, which correspondence
was forwarded by Mr. Williams to the Legation in his dispatch No. 6 of
August 11th, a copy of which it is understood was sent to the
Department, I have the honor to enclose a copy of the Consul’s reply to
the note of the Wuhu Commissioner for Foreign Affairs (sent under
instructions from the Legation); also a copy of a similar protest
addressed by the Legation to the Foreign Office. I have the honor to
request such instructions in the matter as the Department may consider
appropriate.
I have [etc.]
[Inclosure 1.]
Consul Williams
to the Wuhu Commissioner for Foreign
Affairs.
No. 370.]
American Consulate,
Nanking, [not
dated].
Sir: I have the honor to acknowledge the
receipt of your despatch of the 8th instant, stating that, in
addition to the collection of a licensing fee from dealers in
foreign tobacco and alcoholic liquors, the Provincial Government of
Anhui proposes to collect a consumption tax of 2½ per cent on the
sale of these commodities within the treaty port, of Wuhu and
throughout the interior of the province, with the dual object of
increasing the revenue and of restricting the trades concerned.
I find that the treaties in force between China and the foreign
powers prescribe a definite tariff on foreign merchandise imported
into the treaty ports of China, and further authorize the issue of
transit passes against the payment of extra half duty to free
foreign goods so imported of any further dues or duties on
transportation into the interior. The revised import tariff annexed
to the Commercial Treaty of 1903 between the United States and China
states in detail the duty to be paid on imported cigars, cigarettes,
tobacco, wines and other alcoholic liquors. The effect of the taxes
now proposed by the Provincial Government would be to increase the
import duty authorized by treaty by over one half, and this
Consulate, therefore, cannot consent to the collection of the
proposed tax from American dealers or on American products, it being
a clear violation of treaty.
I desire to point out further that the legality of the trades
concerned has never been questioned, and has been admitted clearly
by China by the inclusion in the import tariff of specified duties
on the commodities concerned. This [Page 129] Consulate cannot admit the right of the
Provincial authorities to impose any tax on legitimate foreign trade
with the object of penalizing or restricting that trade.
In addition to reporting the contents of your despatch under
acknowledgment to the American Legation at Peking for its
information and such action as it may consider advisable, I am
forwarding this reply in the hope that appropriate steps may be
taken by the Anhui authorities to cancel the proposed regulations,
thereby conforming to treaty engagements.
I have [etc.]
[Inclosure 2.]
Chargé MacMurray
to the Minister for Foreign
Affairs.
No. 216.]
American Legation,
Peking,
September 4, 1914.
Excellency: I have the honor to call your excellency’s attention to
the regulations recently issued by the Governor of Anhui imposing a
special tax on imported tobacco and wines. Since tobacco and wines
are included in the tariff appended to the treaties, the Chinese
Government has agreed that no taxes other than those provided for in
the treaties shall be imposed upon them. The regulations recently
issued in Anhui are therefore clearly illegal in so far as they
apply to imported tobacco and wines, and I trust that orders will be
issued at once to modify the regulations to bring them in accordance
with treaty stipulations. If your excellency’s Government wishes to
propose to my Government a modification of the treaty regulations
which may allow special treatment to be given to tobacco and wines I
shall be glad to transmit the proposal for the consideration of my
Government. When two parties have entered into an agreement it is
not proper for one to change arbitrarily the methods of procedure
before there has been mutual consultation and mutual consent.
I avail [etc.]
