893.512 Flour/23: Telegram

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

548. Legation’s 521, July 7, noon.

Following from Canton:

“July 13, noon. Commissioner of Foreign Affairs has just intimated that regulations taxing foreign flour may soon be promulgated and suggests privately that a proposed basis from you might be useful. Amount of the duty stated but I understand that it will apply only to foreign flour. If so this would seriously handicap American mills whose imports are considerable.”

Provided the Department approves I propose sending the following reply: [Page 507]

“If the proposed basis means the Legation’s compounding with Canton concerning the violation of American treaty rights, it is obviously impossible to fall in with the suggestion of the Commissioner of Foreign Affairs.”

When definitely informed of the imposition of this tax I propose in accordance with your No. 206, June 28, 5 p.m. to protest to Nationalist higher authorities. In view of the Cantonese demand for financial independence, reported in my No. 526, July 11, 7 p.m.,54 I do not regard it as likely that such a protest would be effective.
  1. Not printed.