611.937/13: Telegram

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

42. Your 24, January 16 [19], 9 [6] p.m., received today.

1.
The Legation was informed by telegraph on January 15 that American wood oil firms at Hankow had informed Consulate General that beginning on the 16th a local tax of $2 per picul would be imposed by the Hankow Surtax Bureau on all exports of wood oil from Hankow.
2.
This telegram was immediately repeated to Perkins26 in care of the Consulate at Nanking with the following comment:

“The Department has recently instructed the Consul General in Shanghai with regard to representations to be made by that office in a similar case regarding importation of Daisy air rifles. Cunningham has been telegraphically instructed to repeat to you his telegram to the Legation on the subject and my reply embodying the Department’s instruction mentioned above.

Since in the Department’s instruction above referred to Cunningham was directed to press the Chinese authorities for ample notice of their intention regarding prohibition of importation of Daisy air rifles, it is suggested that you take up the present matter of the tax on [Page 794] wood oil with Wang27 and inform him that, apart from any question of the legality of the tax, we earnestly urge that the tax be at least postponed in order that sufficient notice of the new levy may be given the American exporters concerned to enable them to protect themselves insofar as concerns their shipments of this commodity already contracted for before notice was received of the imposition of the tax.”

3.
Additional telegram was received from Adams28 on January 16 to the effect that he had received official notice through Bureau of Foreign Affairs that wood oil tax would become effective on 16th but that no actual attempt had been made to collect the tax. This was also repeated to Perkins.
4.
The following telegram has been received from Perkins, January 18, 4 p.m., Hankow being duly informed by the Legation:

“Wang has informed me that Minister of Finance is issuing orders to cancel export tax on wood oil at Hankow and that collection thereof will not be permitted, such taxation being contrary to policy.”

MacMurray
  1. Telegram in two sections.
  2. Mahlon F. Perkins, Counselor of Legation in China.
  3. C. T. Wang, Chinese Minister for Foreign Affairs.
  4. Walter A. Adams, Consul at Hankow.