693.003/829: Telegram

The Minister in China (MacMurray) to the Secretary of State

505. Legation’s despatch number 1389, February 15 and previous.

Arnold has informed me that China Tariff Valuations Commission completed its labors on June 28. Nationalist successor to the post director of Shuiwuchu (now known as the Kuanwuchu) instructed chairman of the commission to complete its work by June 30. New director has intimated that he will submit a report on the work of commission to the Ministry of Finance of the Nationalist Government and there is a likelihood that the report will be accepted and the new tariff schedules made effective.
Arnold states that in his opinion values finally assessed are fair, though on the whole the Japanese probably secured relatively more consideration for values of their commodities than did the British and American delegates who were inclined to be less active in insisting upon conformity with actual wholesale values. Distinctly unscientific compromises were not infrequently made between the Chinese and Japanese delegates in connection with certain commodities in which Japanese were primarily interested but on the whole values are fair and represent the best that could be had in the circumstances. Complete tables of the proposed revised schedules will be forwarded by mail as soon as prepared.
In view of the probability that the Nationalist Government will accept revised schedules I request authority to assent to their application [Page 393] to American imports into China contingent upon unanimous assent of other treaty powers concerned.