The Consul General at Canton (Jenkins) to the Chargé in China (Mayer)67

No. 552

Sir: I have the honor to refer to this Consulate General’s despatch No. 545 of October 8, 1926, concerning the imposition of certain so-called production and consumption taxes, and to enclose a translation of an additional despatch on the same subject dated October 11, 1926.

This despatch refers to the previous communication of October 6, but goes somewhat further in that it purports to quote a communication from the Ministry of Finance in which it is requested [Page 881] that the consuls of the various Powers be notified in order that foreign merchants should be directed to comply with the new regulations. This seems to settle any doubt that might have been entertained as to whether or not these taxes would be applicable to foreigners.

The regulations referred to in the second despatch are identical with those already forwarded to the Legation with the exception that they contain an additional article providing for amendments in future if necessary.

I have [etc.]

Douglas Jenkins

The Chinese Acting Minister of Foreign Affairs at Canton (Chen) to the American Consul General (Jenkins)

Sir: I have the honor to inform you that I have received a communication from the Ministry of Finance reading as follows:

“An instruction has been received from the Nationalist Government to the effect that inasmuch as regulations governing the levy of internal taxes on the production and consumption of goods have been prescribed and publicly announced as on record, the Minister of Finance, to whom a copy of such regulations is sent, is hereby directed to have them carried out accordingly.

Acting upon the above instruction, in addition to instructing the Customs Administration to immediately establish offices to collect such taxes, and to notify the business community to obey, I have the honor to transmit a copy of these regulations with the request that the Consuls of the various Powers be promptly notified in order that foreign merchants be directed to comply therewith.”

It appears that a communication relative to the levy of these new taxes has already been forwarded to you as on record. Since the receipt of the above, in addition to writing separately to the Consuls of the other Powers, I have the honor to send this for your information and to request that you will be good enough to direct all American merchants to comply therewith.

I have [etc.]

Chen Yu Jen
  1. Copy transmitted to the Department by the consul general in his despatch No. 695, Oct. 16; received Nov. 22.