The Japanese Chargé (Yoshida) to the Secretary of State

No. 73

Sir: Referring to the note of the Secretary of State dated June 26th last with regard to the reciprocal exemption of income tax on earnings derived from foreign vessels, I have the honor to inform you under instructions from my Government that a new law No. 6 was promulgated on July 18th last in the Japanese Official Gazette.

[Page 453]

Its translation is as follows:

“A foreign or foreign juridical person, having no domicile in Japan may be exempt from an income tax in respect to earnings derived from a vessel of foreign nationality, provided that a similar exemption is granted by the country in which such foreign vessel is registered, in respect to earnings derived from Japanese vessels.

Additional Rule:

This Law shall be in force from the date of its promulgation.”

I am further instructed to advise you that my Government, assuming that the said law satisfies the exemption provision of Section 213(b) (8) of the United States Revenue Act of 1924, are prepared to instruct their competent Authorities to apply the provisions of this law with regard to American vessels, as soon as my Government are informed of the readiness of your Government to put Japanese shipping on the exemption list.

Accordingly I beg leave to state that I shall be happy to be informed of the approximate date of the revision of the Regulations of the United States Treasury Department.

Accept [etc.]

Isaburo Yoshida