611.937/24: Telegram
The Minister in China ( MacMurray ) to the Secretary of State
564. Department’s 221, July 1, 7 p.m.
- 1.
- Following from Hankow:
“July 10, 10 a.m. Nanking authorities have instructed Customs to collect special tax of $1 per ton on wood oil stored by Werner G. Smith Company, an American concern, in storage tanks of Standard Oil Company here. Tax not being collected from other concerns and is purely discriminatory. Chinese concern immediately adjoining Standard Oil Company tanks is not paying tax. Smith Company notified by Customs if taxes not paid by July 15th permission to store wood oil in Standard Oil Company tanks will be canceled. I suggest advisability of Legation requesting Nanking Government cancel tax immediately on the basis of discrimination against American company.”
- 2.
- Above repeated to Nanking with following instruction:
“Similar tax was subject of negotiations by Perkins in Nanking in January of this year and was eventually abolished in April following representations made by Lockhart to T. V. Soong,63 then in Hankow. Renewal of tax is reported as directly discriminatory against American firm and you should accordingly on my behalf register emphatic protest with Ministry of Foreign Affairs and urge that Ministry of Finance issue immediately instructions for cancellation of tax. Reply by telegraph.”