893.512/678: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
Shanghai, September 26,
1927—4 p.m.
[Received September 26—12:12 p.m.]
[Received September 26—12:12 p.m.]
In amplification of my telegram of September 24, 8 p.m. and attempting to make clear the local position, the following is submitted:
- 1.
- Tobacco products, wines and liquors imported in Japanese vessels are released upon deposit with consular officials of the authorized treaty duties only.
- 2.
- The same merchandise imported in British vessels is cleared upon deposit of treaty duties and Washington surtaxes.
- 3.
- The same merchandise when imported in American vessels pays all of 2 plus fifty percent ad valorem on tobacco products and thirty percent on wines and liquors. Permanent competition under this handicap is impossible.
- 4.
- American consignees are unable to secure benefits of 1 or 2 because the American consul general is not permitted by the Department to receive in trust of Customs the import impositions.
- 5.
- Many, and it is believed all, other extraterritorial consular officers are authorized to extend that assistance to their nationals importing merchandise so that they may have an equal opportunity with their competitors.
- 6.
- Amplifying paragraph 5 of my September 24, 8 p.m., the decision continues an insuperable handicap on American shipping which if not remedied by the Department will make it unprofitable for it to operate at this port.
- 7.
- Commissioner Lurton stated in his decision that relief lies with the executive branch and diplomacy. In view of recent developments herein and heretofore stated, I again urge with all respect and earnestness that I be allowed to receive, in trust, treaty duties, to advise the Customs that I have done so, and to inform American shipping companies and warehousemen that there is no objection to their releasing the merchandise.
- 8.
- I know of no other way to place American shipping and importers upon an equality in Shanghai with competitors of other nationalities. American shipping has lost much in prestige and freight because I have been unable to extend that protection which my colleagues are extending. As stated in my September 9, 2 p.m.,59 to the Legation, the cancellation of freight by American lines is not confined to tobacco and wines, but extends to general cargo; and I find that already local firms have cabled their connections not to ship to Shanghai by American vessels.
- 9.
- In reply to suggestion that [merchandise] so cleared may possibly be treated as contraband when it leaves the Concession, I may state that no difficulty has, to my knowledge, been placed in the way [of] the release, movement, or disposition of such merchandise because of the manner of its clearance. It is certain that there will be no discrimination against American merchandise in this respect.
- 10.
- An early and liberal authorization to deal with American-borne merchandise, as in paragraph number 1, when so requested by the importer will go far towards placing American ships and importers on an equality with their competitors. It will also, in my opinion, do much to bring the Nationalists to reason, to cause them to withdraw the few remaining unauthorized import duties, to restrain them from [Page 416] imposing further illegal impost, and to induce them to approach the question of increases in duty and taxes in an orderly and legal manner, a consummation greatly to be desired.
- 11.
- Reference is made to my telegrams to the Department of September 22, 10 a.m.,60 and September 20, 4 p.m.; and to the Legation of September 16, 3 p.m.,60 September 9, 2 p.m.,61 August 17, 10 a.m.,60 and July 27, 4 p.m.60 Repeated to the Legation.
Cunningham