893.512/917

The Minister in China (MacMurray) to the Consul at Hankow (Adams)22

Sir: I beg leave to acknowledge the receipt of your despatch L. No. 599, of December 22, 1928,23 concerning the increased tobacco tax instituted by the Chinese authorities in Hankow, in which you enclose a copy of a letter received from the Hankow office of the Liggett & Myers Tobacco Company (China) Ltd., in which it is alleged that the competitors of the American company had, in some manner, obtained advance notice of the increased tax and had immediately, before its imposition, forwarded large stocks to their dealers, thus placing the American firm at a serious disadvantage.

It would appear to the Legation that unless Messrs. Liggett & Myers Tobacco Company (China) Ltd., are in a position to show that their competitors received some form of official notice of this increased tax, the Consulate General would not be justified in lodging a formal protest in the matter. However, in view of the fact that the business of the American firm has been unfairly affected by the lack of notice of the imposition of such tax by the local authorities, you are authorized, unofficially, to use your good offices in taking up the matter with the local authorities pointing out the fact that the imposition of this tax, as at present contemplated by them, is operating unfairly against the American company. It is suggested that, at the same time, you might endeavor informally to discuss some means whereby the enforcement of this tax against the products of the American company might be delayed until Messrs. Liggett & Myers Tobacco Company (China) Ltd., have been given a fair opportunity to receive sufficient stocks to place them on an equal basis with their competitors.

I am [etc.]

J. V. A. MacMurray
  1. Copy transmitted to the Department by the Minister in his despatch No. 1849, January 10; received February 16, 1929.
  2. Not printed.