611.937/22
The Minister in China ( MacMurray ) to the Consul General at Hankow ( Lockhart )55
Sir: I beg leave to acknowledge the receipt of your despatch No. 681, of April 11, 1929,56 in which you bring to the attention of the Legation a statement of Messrs. Werner G. Smith Company, an American firm, to the effect that they paid out as special taxes on wood oil, from February 9, 1929, to March 18, 1929, the sum of $46, 093.94. You suggest that, inasmuch as the Minister of Finance had issued orders canceling the special export tax on wood oil at Hankow, the Legation may wish to consider the question of entering into negotiations with the National Government for the refunding of the abovementioned amount to Messrs. Werner G. Smith Company. You further enclose copy of an enclosure to a letter from Messrs. Werner G. Smith Company dated April 8, 1929, to your office, listing the dates on which these taxes were paid and the various amounts paid by the company on the dates indicated.
After a careful consideration of the matter, the Legation is not inclined to think that there is any likelihood that the National Government would refund the amount in question to the Werner G. Smith Company, a course which would obviously involve a similar refund of all amounts collected through the special export tax on wood oil. In the absence of discrimination against the American firm, the Legation is, furthermore, not of the opinion that the facts of the case would justify the filing of a diplomatic claim. In the event, however, that the company desires to lodge such a claim, the Legation will be glad to submit it in the usual manner to the Department of State for consideration.
I am [etc.]