693.003/908

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

No. 2066

Sir: With reference to the Department’s telegraphic instruction No. 131, of April 20, 5 p.m., I have the honor to enclose a copy of a note, No. 757, of April 30th, which was addressed by this Mission to the Ministry of Foreign Affairs of the National Government at Nanking, with regard to discriminatory practices against American nationals and their goods in the collection by the Chinese customs authorities of certain surtaxes.

The Department’s attention is respectfully invited to page four, line three, of this note, in which the following appears:

“During March when steamer traffic was resumed this arrangement was extended to cargo exported in vessels by Japanese subjects.”

This statement was included in the note as a result of information received subsequently to the despatch of the Legation’s telegram No. 283, of April 15, 10 p.m.

I have [etc.]

J. V. A. MacMurray
[Page 810]
[Enclosure]

The American Minister (MacMurray) to the Chinese Minister for Foreign Affairs (C. T. Wang)

No. 757

Excellency: I have the honor to inform Your Excellency that reports have recently been submitted to me by American consular officers in China with regard to the application of the Chinese Customs tariff from which it appears that, in the collection of duties at certain ports, the Chinese Customs Administration is discriminating against American nationals in contravention of the provisions of the Sino-American Treaty of July 25, 1928.

The American Consul at Tsingtao has informed me that the Commissioner of Customs at that port, in Customs Notification No. 200, of February 9, 1929, announced the imposition, as from February 10, 1929, of surtaxes upon native exports and native imports of 2½ per cent and 1½ per cent respectively. It appears that, in the collection of these surtaxes, preferential treatment was granted to Japanese nationals in that they were not compelled to pay them directly and unconditionally into the revenues of the Chinese Maritime Customs, but were permitted to make deposit in a special account with the Customs bank pending action upon a protest which had been made by the Japanese authorities that the collection of these surtaxes was illegal. A similar privilege was in the meantime denied to American nationals, who are at the present time compelled to pay these surtaxes directly into the Customs revenues. I am informed furthermore that the Commissioner of Customs at Tsingtao is acting in this matter under the specific instructions of the Inspector General of Customs, who, on February 18, 1929, directed the Commissioner that merchants of other than Japanese nationality were not to be accorded the privilege of paying on deposit during the period of negotiation, and that all surtaxes collected from those of other nationalities were to be paid into ordinary revenues and not into a suspense account with a view to possible eventual refund.

A further instance of discrimination in the collection of Customs duties has been reported to me by the American Consul at Mukden, who states that surtaxes similar to those imposed at Tsingtao were to have been imposed at Antung and other ports on the Korean border on February 16, 1929. In consequence of a protest from the Japanese authorities, the collection of the surtaxes was postponed; but a working arrangement was finally reached whereby bona fide Japanese and Korean merchants were not to pay these surtaxes upon rail-borne cargo. During March when steamer traffic was resumed [Page 811] this arrangement was extended to cargo exported in vessels by Japanese subjects.

I have the honor, therefore, under instructions from my Government, to ask Your Excellency’s Government to investigate these discriminatory practices, with a view to their discontinuance, if still found in effect, and to the satisfaction of any well-founded complaints which American nationals may have to bring in this relation. I am also directed by my Government to express the hope that Your Excellency’s Government may also see its way to issue such instructions to the Chinese Customs Administration as may obviate the possibility of similar instances of discrimination arising in the future.

I avail myself [etc.]

J. V. A. MacMurray