Papers Relating to the Foreign Relations of the United States, 1926, Volume I

893.512/471: Telegram

The Secretary of State to the Minister in China (MacMurray)

[Paraphrase]

Washington, December 14, 1926—8 p.m.

298. Your telegram No. 613, December 14, 4 p.m.

1. The Embassy at Tokyo has not been authorized by the Department to support the plan.

2. The Japanese Ambassador called some days ago. When the question of surtaxes was mentioned during the conversation, I stated that the Department was not informed as to the attitude of the Japanese Government toward the question of surtaxes.

3. The Japanese Ambassador came to see me today. He stated that he had been informed by his Government, in reply to this question, that the Japanese Government understood that the British Government proposed to accept the Cantonese imposition of surtaxes on condition that their collection be made by the Maritime Customs; and it understood that at Peking the American Government favored a proposal authorizing the Chinese Government to levy Washington surtaxes without other reservation than that these taxes be collected by the Chinese Maritime Customs.

4. The Ambassador declared that the Japanese Government was opposed to these proposals since the Government felt that its assent at the present time to the surtaxes would mean that by such consent the powers would encourage the Chinese leaders to believe that the powers were interested no longer in their treaty rights and that they could attempt in disregard of treaty rights to levy any taxes they might please upon foreigners and foreign trade without fear of being called to account. The Ambassador went on to say as his informal opinion that the Japanese Government believed that encouragement would be given to the Chinese by such a step to cease respecting any of the provisions of China’s treaties with foreign countries.

5. The Ambassador declared that the suggestion to have the surtaxes made generally applicable throughout the territory of China was opposed by his Government because a situation such as that would require that the powers authorize the payment of the revenues collected by the Customs to one or another of the warring factional leaders. In regard to leaving this question for decision by the Customs, he believed there would be an unfortunate effect upon the leaders of the Cantonese if the collected monies were all placed in one fund by the Customs and paid over to such government at Peking as might have control there.

6. He further stated that the feeling of the Japanese Government was that a decision as to how the situation in China was going to develop could not yet be made. Therefore it preferred to wait, meanwhile lodging protests against the levies of taxes contrary to the provisions of existing treaties, with whatever factions might levy such taxes. He declared that there was no intention on the part of his Government to use force to make such protests good, but that Japanese merchants would be directed to pay, subject to protest, if such taxes against themselves or their goods were levied and if it were necessary to pay the taxes.

7. I stated that this Government was informed that the Cantonese taxes would be accepted by the British Government without protest provided their collection was made by the Maritime Customs; that this Government believed that on a question of this kind, to enter into arrangements with one or another Chinese faction was unwise because of the danger that a policy such as that would result merely in dividing China more or less permanently into separate parts; and that this Government, rather than to pursue that policy, had been in favor of giving you, its Minister in China, authorization to consider with your colleagues a proposal by which the Chinese Government would be authorized to make a levy, uniformly upon foreign trade throughout China, of the surtaxes provided by the treaty at Washington, the only reservation to be that the Chinese Maritime Customs should collect the taxes. I said that we wished to avoid being involved in any questions as to disposing of the funds so derived among the warring factions.

8. The Japanese Ambassador reiterated that there was not a disposition on the part of the Government of Japan to favor at this time a granting of the surtaxes provided by the Washington Treaty without reservation and before having the formal negotiations which the treaty implied should occur at the time the taxes were granted.

9. He remarked that it was his belief that an instruction had been given to the Japanese Minister to inform you respecting these matters.

10. You will perceive from the foregoing that it appears that the Japanese Government is unwilling to accept the proposal. It is not desired by the Department that proposals should be advanced unless the interested Governments all agree.

Kellogg