File No. 893.512/74

Minister Reinsch to the Secretary of State

No. 1330

Sir; Referring to the telegraphic instruction of December 20, 1915, 5 p.m.,50 replying to the Legation’s despatch (No. 807) of October 29, 1915,51 on the subject of the applicability of the stamp taxes enacted by the Chinese Government, I have the honor to enclose herewith a translation of a note (No. 549) under date of the 26th ultimo in which the Minister for Foreign Affairs communicated for the information of this Legation a report on the subject received from the Chinese Minister in Washington.

In particular reference to the statement that

an instruction has been sent to the Minister to China to enter into negotiations to request the amendment of the stamp tax law, so that Americans in China will be more willing to pay the tax,

I beg to inquire whether the reference is to the Department’s No. 90 of May 4, 1914,52 directing that, in the event of approval of the regulations by the other Treaty Powers, an endeavor should be made to secure such a revision as would make them more acceptable to residents in China.

In this connection I have to report that no collective action on this matter has been taken up by the Diplomatic Body subsequent to what has already been reported to the Department, and that the Legation is not aware of any action having been taken in reference to it by individual nations, save such as indicated in the enclosed translation of note from the Foreign Office dated December 26 last.

Pending the receipt of a reply to this despatch, the Legation is making no response to the note from the Minister for Foreign Affairs.

I have [etc.]

Paul S. Reinsch
[Page 240]
[Inclosure—Translation]

The Minister for Foreign Affairs to Minister Reinsch

No. 549

Sir: Referring to the matter of the extension of the operation of the stamp tax I have the honor to state that a despatch has been received from the Chinese Minister at Washington as follows:

A reply has been received from the American Department of State on this subject as follows:

“In reference to the matter of the extension of the operation of the stamp tax, an inquiry was received from the Minister to China, to which an answer was sent, stating that this Government accepts in principle the collection of the tax by the Chinese Government from Americans in China. An instruction has been sent to the Minister to China to enter into negotiations to request the amendment of the stamp tax law, so that Americans in China will be more willing to pay the tax. After the Governments of the different countries have all granted their consent it can be put into force.”

This Ministry is most grateful for the kind assistance of your Government. The Governments of Portugal and Brazil have now severally given their consent to the enforcement of the tax. The Governments of the other nations have not yet replied formally stating what views they take regarding this matter. This Ministry has now addressed separate notes to the Ministers of the said Powers at Peking, requesting that they urge their respective Governments to express their agreement at an early date and to send a reply.

I am accordingly addressing this note to you for your information and cooperation. Upon receipt of replies from the Governments of the other nations I will again address you in order that negotiations may be facilitated.

With compliments.

Wu Ting-fang