File No. 893.512/71
Minister Reinsch to
the Secretary of State
No. 1215
American Legation,
Peking,
September 29, 1916.
Sir: With reference to the Legation’s despatch
No. 686 of July 12, 1915,47
and to the Department’s instruction No. 324 of September 16, 1915,48 I have the honor
to transmit herewith a copy of a further despatch (No. 310 of August 21)
from the Consulate General at Hankow, in regard to the so-called 99
Mercantile Tax, together with the instruction (No. 1873) which the
Legation addressed to the Consulate General on the 27th instant in reply
thereto.
In view of the Standard Oil Company’s being able to avail itself of the
method contemplated in the treaties with China for exemption from
taxation in the interior of whatever nature, namely the taking out of
transit-passes for goods shipped into the interior, the Legation has
felt it necessary to inform this company that if it finds the pao-shang-piao system more advantageous than the
transit-pass system, it may be assumed to accept the defects as well as
the advantages of that arrangement.
The Consul General at Hankow was accordingly instructed that the Legation
can undertake to do no more than secure the Standard Oil Company against
actual discrimination or other demonstrably unlawful acts of the Chinese
authorities, if it chooses to carry on its business in Kiangsi Province
under the pao-shang-piao system. I hope that the
Legation’s attitude in this matter will receive the Department’s
approval.
I have [etc.]
[Inclosure—Extract]
Consul General Cunningham to Minister Reinsch
No. 310
American Consulate General,
Hankow,
August 21, 1916.
Sir: I have the honor to transmit a copy
of a letter from the Standard Oil Company of New York, Kiukiang
Branch, dated August 17, 1916, regarding the efforts of the Kiangsi
officials to collect the 99 Mercantile Tax. Inasmuch as this tax
does not seem to be any more regular than it was a year ago when
various protests were filed by this office against it, it would seem
a suitable moment to renew the protest but for the fact that the
question has been referred to the Legation for action. It appears
that the Kiangsi officials in certain districts intend to collect
the tax unless strong protests be filed against such, so that
foreign merchandise will be protected from this discriminatory tax.
If further action is advisable by this office I would request
instructions regarding the mode that it shall take. It is doubtful
whether anything of a permanent character can be accomplished by
this Consulate General, and certainly the result will not be nearly
so effective as it will be should the Legation procure a settlement
in Peking.
I have [etc.]
[Page 233]
[Subinclosure]
[Untitled]
Standard Oil Company of New York,
Kiukiang, China,
August 17, 1916.
The American Consul
General, Hankow.
Sir: The further efforts of Kiangsi
officials to collect the “99 Tax,” reported in our letter of July
27, ’16, are continued and have been extended to other points,
notably Kingtehchen and Kanchowki. Unless prompt action is taken, it
is possible that we shall be obliged to permit our agents to
compromise the question in order to continue business.
In this connection we should advise you that the new British Consul
at this port has expressed entire willingness to adopt the same
attitude which we have assumed and is already in communication with
the officials at Nanchang. We understand that, in reply, the
officials have reverted to their old counterattack on general
trading rights of foreigners in the interior. As we have frequently
stated, we wish to avoid, if possible, a reopening of this question
of trade rights.
Very truly yours,
Standard Oil Company of New York, Kiukiang
Branch
Herbert R. Everall, Attorney
P. S.—We are just in receipt of a telegram from our agent at
Kingtehchen requesting immediate assistance and support with
reference to this question.
