The Chargé in Japan ( Caffery ) to the Secretary of State

No. 229–E

Sir: I have the honor to report that, in view of the unsatisfactory condition of Japanese shipping and the urgent necessity of economizing on operating expenses as much as possible, the Japanese Ship Owners’ Association has decided to petition the Finance and Communication Departments, with a view to bringing about a modification in the present income tax regulations, in order that advantage may be taken of the clause in the American income tax laws providing that the shipping of a foreign nation which does not impose a tax of a like nature on American shipping is not required to pay the corresponding American taxes.

Those, who are conducting the agitation, point out that such action on the part of the Government would mean a great saving to Japanese shipping, as over one million dollars is paid annually to the American Government by Japanese ship owners; whereas American shipping does not pay over eighty thousand dollars per year to the Japanese Government.

I have [etc.]

Jefferson Caffery