893.512/972
The Consul General at Tientsin ( Gauss ) to the Minister in China ( MacMurray )60
Sir: I have the honor to enclose copy of two letters addressed to me as Senior Consul by the Tientsin General Chamber of Commerce,59 [Page 812] in reference to the recent action of the Hopei (Chihli) provincial government in ordering a 30% increase in likin (Consolidated Goods Tax) rates in this Province.
The Tientsin General Chamber of Commerce stresses the point that China has undertaken to take steps to abolish likin and internal taxation, but, in the face of such undertaking, now increases the likin tax in this Province.
The reply which would naturally follow to this protest is that the foreign merchant may avoid the payment of likin by employing the transit pass system; but it is a fact that the transit pass system, inward and outward, is rapidly falling into disuse because of the constant effort of the tax authorities to break it down by attempting to charge irregularities between the pass and the goods with a view to imposing fines or attempting confiscation.
The Consular Body at a meeting held on June 18th decided that the protest of the Tientsin General Chamber of Commerce should be brought to the attention of the Foreign Ministers for their information and consideration, the opinion being expressed that the Ministers should be currently informed of such violations by provincial authorities of the undertakings of the national government.
A despatch is being forwarded to the Senior Minister enclosing copies of the letters from the Tientsin General Chamber of Commerce.
I have [etc.]