893.102S/267
The Secretary of State to the Minister in China (Johnson)
Sir: The Department has received your despatch No. 530 of October 21, 1930, and the enclosures thereto,8 on the subject of licenses required of American plumbing contractors by the Chinese Municipality at Shanghai.
It would appear from the amount of the license fee that the Chinese Municipality, in addition to any desire to ensure that only qualified contractors engage in plumbing work, has in mind the raising of funds for certain purposes. The Department therefore considers that there should be applied to this requirement of the Municipality the principles set forth in the Department’s instruction No. 546 of June 2, 1927,9 in regard to municipal taxes. In that instruction the Department stated that “it would be desirable to instruct American citizens, when demands are made by the Chinese authorities for the payment of municipal taxes, that the American Government advises them to pay, as a voluntary contribution, the rates levied on Chinese and other foreign citizens, when such rates are, in the opinion of the Legation, reasonable and when appropriate municipal services are rendered in return.” The Department stated, further, that it expected “to be given the opportunity to express an opinion, if it desires to do so, regarding municipal regulations designed to be applicable to American citizens, in order that it may ascertain whether the rights properly enjoyed by such citizens are infringed upon.”
In the present instance, the Department notes that the Legation is of the opinion that the fees charged in connection with the licensing of plumbing firms are excessive. The Legation would therefore be justified in directing that the Consul General at Shanghai call this point to the attention of the Chinese authorities, with a statement that the provisions of existing treaties between the United States and China permit American citizens in China to carry on trade, industries and manufactures, or pursue any lawful avocation, and that the imposition [Page 984] by the Chinese authorities of undue and excessive restrictions on legitimate American activities would in effect tend to nullify the treaty provisions and to render impossible friendly and legitimate commercial relations between the citizens of the two countries. It might be stated also that the American Government is prepared to advise American citizens to pay, as voluntary contributions, municipal rates levied without discrimination on Chinese and foreign citizens in Chinese administered areas when the rates are, in the opinion of the American authorities, reasonable and when appropriate municipal services are rendered in return. It should be made clear that no penalty may be imposed on American citizens for failure to make such contributions. Request might be made for a copy of the complete text of the regulations and for information with regard to the uses to which the rates apply.
While the foregoing expresses the Department’s general attitude on the specific question of the fees prescribed by the Chinese Municipality at Shanghai in connection with plumbing contractors, the Department does not believe that representations made by the American authorities alone would be likely to be effective. The Legation should, therefore, before taking any further action in the matter, endeavor to ascertain the attitude of the other foreign governments principally interested. In case there should be unanimity of view that some action along the lines of this instruction should be taken, the Legation may, in its discretion, adopt that course in conjunction with the representatives of the other interested Powers.
It is observed that the question of the Chinese authorities levying fees on American plumbing contractors has a bearing upon the broad question of the status of extra-Settlement roads at Shanghai and matters related thereto. In this connection reference is made to the Minister’s statements, communicated to the Department in the Legation’s telegram No. 2 of January 1, 1 p.m., [1931]10 that both the Chinese and the foreign authorities have been awaiting the issuance of Judge Feetham’s11 report on the International Settlement and the extra-Settlement roads at Shanghai, that it is expected that the report will soon be issued12 and that it will furnish a basis for the settlement of these questions. In view of these statements, the Department questions the advisability of proceeding at this time with a discussion with the Chinese authorities of one phase of a general problem and [Page 985] suggests for your consideration that it might be well to await the publication of Judge Feetham’s report and then endeavor to work out, in conjunction with the representatives of the other interested Powers, a basis for a settlement with the Chinese authorities of the general question of extra-Settlement roads and related problems.
Very truly yours,
- Not printed.↩
- Foreign Relations, 1927, vol. ii, p. 390.↩
- Foreign Relations, 1930, vol. ii, p. 353.↩
- Richard Feetham, Judge of the Supreme Court of the Union of South Africa, engaged to report on the future policy for the International Settlement at Shanghai.↩
- Report of the Hon. Richard Feetham, C. M. G., to the Shanghai Municipal Council, pts. I–VII (Shanghai, 1931–32).↩