693.003/541: Telegram

The Minister in China (Reinsch) to the Acting Secretary of State

I have the honor to recommend that the Department strongly urge the earliest possible ratification by the Senate of the Chinese customs tariff as revised at Shanghai as soon as the text is received. Most governments consider the revision as an essentially administrative act of bringing the duties imposed to the rate of 5 per cent effective as provided by the treaties. The British and Japanese delegations had full powers; those Ministers whose delegations were not plenipotentiary expect very early ratification by their home Governments.

As the Chinese Government was assured over a year ago that this act of justice toward China would be carried out made efforts [sic] that the ratification may not be delayed.

The Chinese Government proposes that new tariff is to go into effect one month after ratification by all treaty powers and is to apply to all goods shipped from their country of origin after that month has expired. The agreement of the American Government to this proposal has been requested.

[Page 656]

With respect to the land frontier tariff Russian Minister has stated to his colleagues that as he conceives it to be his duty to keep all Russian rights in statu quo until a Russian Government shall have been constituted he shall therefore be obliged to enter formal objection to an increase of the duties on the Russian frontier. The general opinion is that it would be decidedly inequitable for any country to ask for its land frontier trade more than existing 33 per cent reduction from the general rate. Great Britain, Japan and France are willing to accept proportional increase of land frontier tariff. It is understood the tariff will be applied by the Chinese Government in spite of formal reservation of Russian Minister [omission] eventually would recognize the equity of the proportional increase.

I have the honor to recommend strongly that the American Government insist on the equitable increase because otherwise American commerce, altogether sea borne, will be placed under a great disadvantage, particularly in Manchuria.

Reinsch