893.512/748: Telegram

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

32. My 13, January 9, 1 p.m.

Following from consul general at Hankow:

“[5] January 14, 11 a.m. Your 2, January 9, 1 p.m. Tobaccc companies have been approached with a view to compromise arrangement on the 50 percent tax and there is some prospect that question will be settled on a basis of less than half of new tax provided certain cash advances are made. I am confidentially informed that Mr. Arthur Bassett on behalf of the British-American Tobacco Company is negotiating with the Nanking authorities at Shanghai for a special agreement on the basis of a tax of 22½ per cent on cigarettes.”

Repeated to Shanghai for confidential information.