893.512/637: Telegram
The Chargé in China (Mayer) to the Secretary of State
Peking, August 17,
1927—10 p.m.
[Received August 17—6:40 p.m.]
[Received August 17—6:40 p.m.]
816. 1. Following from American consul general at Shanghai:
“August 17, 10 a.m.
- (1)
- In view of the urgent necessity of taking further steps forthwith to dissuade the Chinese authorities from proceeding with their 1st of September programme, the consuls general for America, France, Great Britain, and Japan, without wishing in anyway to forestall the decision of the interested Ministers on the senior consul’s telegram of the 9th August, urge that they be given immediate authority to initiate informal conversations with the local Chinese [Page 403] authorities with a view to securing abandonment or at least postponement of the Nanking taxation proposals.
- (2)
- At the same time we propose, unless otherwise instructed, to allow our merchants to take any steps which legal opinion may show to be open to them, to test at once by interlocutory proceedings in the courts the right of foreign-owned bonded warehouses to detain in bond cargo on which the legal duties have been tendered and refused. In particular the special taxes on wine and cigarettes would seem to be open to this form of attack.
- (3)
- On the Chinese side there is obvious nervousness as to what further steps we intend to take, while on the foreign side we feel bound to state that the demand for action becomes daily more insistent as the crisis approaches, threatening destruction of the trade and industry of Shanghai.
- (4)
- In explanation of paragraph 2 it should be stated that the French consul general is permitting suit to be filed in the French court and it is believed that a temporary injunction will be issued against the foreign-bonded warehouse keeper and similar proceedings are taking place in the Japanese court today. Neither British nor American consul general is satisfied that such procedure would be successful in his court. However this is being investigated by the legal fraternity.
- (5)
- Paragraph 3 (1?) is a repetition of the first sentence of paragraph 9 of my telegram of July 27, 4 p.m. to the Senior Minister on which subject probably the Japanese Minister will be able to throw considerable light. Paragraphs numbers 4 and 5 are my comments on the preceding ones.”
2. To which I have replied as follows:
“August 17, 10 p.m. Your 139, August 17, 10 a.m.
- (1)
- Regarding first paragraph, it was the sense of a meeting this morning of the Chiefs of Mission concerned that the informal conversations you propose would not be tactically wise at this time. It would seem more advantageous not to dispel by informal conversations on the subject of the illegal taxation the nervousness which you state is obvious on the Chinese side as to what further steps the foreigners intend to take in the matter.
- (2)
- Regarding second paragraph it is my judgment that you should take no position whatsoever neither encouraging nor opposing in regard to American citizens having recourse to legal steps in respect of the unlawful taxation. I have however submitted this question to the Department for instructions which you should await before taking any action.”
3. I earnestly solicit the Department’s early instructions.
Mayer