893.102H/479
The Secretary of State to the Minister in China (MacMurray)
Sir: The Department refers to the Legation’s telegram No. 92 of January 28, 4 P.M., and the Department’s telegraphic reply No. 48 of February 4, 5 P.M., in regard to the payment of municipal taxes by American citizens residing at Harbin.
On a review of the whole subject, it appears that, in spite of the joint representations of the consular authorities at Harbin, the former municipal administration was abolished in the spring of 1926, and was followed first by a temporary municipal committee and, subsequently, on November 1, by a new municipal government providing for an assembly of delegates and a municipal council, based upon regulations issued by the Chinese authorities on July 6, 1926. In the Legation’s despatch No. 773 of October 7, 1926, the Department was informed that the British and the Japanese Legations are maintaining the attitude that the new regulations should not be accepted as legally binding upon their nationals and prefer that, pending a definite solution of the question, reasonable taxes should be paid in the form of voluntary contributions.
The Department approves the suggestion made in the Legation’s despatch of October 7, 1926, that Mr. Hanson be authorized to inform the Chinese authorities that the regulations in their present form are unacceptable to the American Government and that, in the meantime, an arrangement be made whereby “municipal taxes in the form of voluntary contributions can be paid, either directly or through the Consulate, to the authorities with the understanding that unreasonable taxes or unreasonable amounts will not be paid”. The Legation’s telegram of January 28 appears to indicate the rate of taxation considered by Mr. Hanson to be reasonable.
The Department does not understand, however, precisely what degree or nature of foreign participation in the municipal administration at Harbin the Consuls there of the interested Powers desire to have granted to their nationals. This subject should be included in the comment asked for in paragraph 4 of the Department’s telegraphic instruction No. 61 of February 5 [15], 4 P.M.64
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