693.11246 Hoggard-Sigler/2

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

No. 757

Sir: I have the honor to refer to the Legation’s despatch No. 644, of December 3, 1930,2 regarding the cases of the Nichols Superyarn and Carpets, Federal, Incorporated, U. S. A., and Messrs. Hoggard-Sigler, both of which were compelled to pay a further duty at Shanghai after payment of all regular dues at Tientsin, the original port of shipment.

The Legation has now received a communication dated December 29, 1930, from the Ministry of Foreign Affairs, in reply to its representations requesting a refund of the dues unlawfully collected at Shanghai. A copy in translation of the Ministry’s note is enclosed2 for the information of the Department.

Inasmuch as further correspondence with the Ministry of Foreign Affairs regarding these cases would appear to be futile, it is requested that the Legation be instructed as to what further action, if any, the Department considers might be taken. So far as the Legation is aware, the action of the National Government is without legal basis and in contravention of treaty provisions regarding the collection of customs dues, and it is believed that the National Government is legally liable to refund the dues collected a second time at the port of Shanghai. It will be noted that the Ministry of Finance, to whom this matter was referred by the Ministry of Foreign Affairs, makes no attempt to either justify or regularize the double collection of dues, but contents itself with stating that this action was taken in conformity [Page 982] with the orders of the National Government and that it applied equally to American, Chinese and other foreign merchants.

Respectfully yours,

Nelson Trusler Johnson
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