The Minister in China (Johnson) to the Consul at Swatow (Berger)17
Sir: The Legation has received your despatch of June 20, 1930,18 inquiring whether you might correctly protest against taxation in cases where there is no discrimination against American goods.
Provided that none of the commodities taxed have paid transit dues in lieu of likin, and provided there is no discrimination against American goods, you should refrain from any protest against the taxation mentioned. The Department has held that, by accepting transit dues and issuing a transit pass which purports to free the goods covered from all inland taxation en route, the Chinese Government has entered into a contract and that attempts to levy likin and inland taxes on goods covered by transit pass may properly be protested against.
I am [etc.]
Counselor of Legation