693.002/991
The American Ambassador in Japan (Grew) to the Japanese Minister for Foreign Affairs (Arita)
Excellency: The Tax Bureau of the so-called Rehabilitation Commission at Swatow, China, which, as Your Excellency is no doubt aware, is sponsored by agencies of the Japanese Government, has since November of last year levied taxes on imports and exports at that port. This Commission has issued regulations announcing the collection, as of November 1, 1939, of a five per cent ad valorem tax on local produce and a ten per cent ad valorem tax on imports not liable [Page 754] to the Consolidated Tax, and it has also commenced the collection of a forty per cent ad valorem tax on postal parcels entering Swatow. I am instructed by my Government to protest this illegal and unwarranted action of the Swatow Rehabilitation Commission.
I desire to recall to your attention the interest, which has been expressed on frequent occasions to the Japanese Government, of the American Government in the preservation of the integrity of the Chinese Maritime Customs. I am desired by my Government to protest the continued refusal of the Japanese authorities to allow the Chinese Maritime Customs to function at Swatow while in fact opening the port to the trade of Japanese merchants and permitting authorities at that port under the sponsorship of Japanese agencies to collect import and export taxes.
In this connection I have the honor to request that the Japanese Government issue instructions to its agencies in China to the end that further infringement of the rights and duties of the Chinese Maritime Customs be stopped.
I avail myself [etc.]