893.512/936
The Consul at Harbin (Hanson) to the Minister in China (MacMurray)38
Sir: I have the honor to refer to my despatch No. 1858, dated December 18, 1928,39 on the subject of a new tax on foreign goods in Heilungchiang Province, and to report that under date of December 14, 1928, after much correspondence with the provincial authorities at Tsitsikar, I quoted to the Civil Governor Article XI of the Treaty of Commerce and Navigation entered into between China and Japan in the year 1896,40 which states that after the payment of transit dues goods should be exempted from all further inland charges whatsoever, and Article III of the Commercial Treaty of 1903 into between China and the United States41 referring to the favored nations clause. Under date of February 14, 1929, the Civil Governor replied stating that once the destination of the goods is reached the transit passes become null and void, and the destination and consumption and sales taxes must be paid as well. A copy, in translation, of this letter is enclosed herewith.39
The agents of the Standard Oil Company of New York up-country are paying this tax and charging the consumer with the same in increased prices on oil. At some places a less percentage is paid than at others, the price upon which the tax is based varies, and the taxes are collected on sales at the end of the month or on anticipated sales at the beginning of the month. The threat to collect a L$l.-tax on each case of oil has not been carried out.
In the face of the determination of the provincial authorities to collect these consumption and sales taxes it would appear useless to protest against their levying the same. It can only be hoped that the Nationalist Government, which has insisted upon levying increased Maritime Customs import charges will some day be in the position to prevent the levying of these exorbitant local import taxes.
I have [etc.]
- Copy transmitted to the Department by the Consul at Harbin in his despatch No. 4771, March 1; received March 26, 1929.↩
- Not printed.↩
- Signed at Peking, July 21, 1896; British and Foreign State Papers, vol. lxxxviii, p. 473.↩
- Signed at Shanghai, October 8, 1903; Foreign Relations, 1903, p. 91.↩
- Not printed.↩