500.A 4 e/443: Telegram
The Secretary of State to the American Delegation
[Paraphrase]
Washington, October 31,
1925—6 p.m.
2. Your 6, undated, received October 30, 1:45 p.m.
- 1.
- Situation described in paragraph 4 of your telegram is fully understood by the Department. For this reason your suggestion that we make reasonable concessions to meet the demands of China is approved. As was indicated in our telegram 282, October 5, 1 p.m., the Department is skeptical of the final success of negotiations which involve an undertaking for the abolition of likin on the part of the present Chinese administration or of any government which is likely to succeed it. Since, however, the Chinese delegation has made a proposal which includes a plan for the abolition of these provincial taxes and as this certainly is to the advantage of foreign trade, the Department considers that it is best to encourage the Chinese to put this proposal into effect. The Department sees no objection to your working on the basis outlined in the paragraph numbered 2 in your telegram.
- 2.
- Department suggests that you consider whether it is possible to deduct from sums allotted to a province which collects protested likin the amount of any rebates made by the Chinese Customs Administration as provided in your section (h). In this way the province would have to assume certain responsibility.
- 3.
- With reference to your paragraph 3, the Department suggests the following order for the disposal of revenue derived from the surtax: (1) to compensate provinces for the loss of likin; (2) to pay the rebates mentioned in your paragraph 2, section (h); and (3) for the Central Government’s administrative expenses and the refunding of unsecured debts equally.
Kellogg