893.512/1101: Telegram

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

83. Shanghai’s despatch to the Legation 6639, September 26, 1930.23

1.
Senior Consul at Shanghai has submitted for the approval of the diplomatic body a tentative agreement between the consular body and the Consolidated Tax Administration of the Ministry of Finance for the application of the rolled tobacco tax regulations in the International Settlement. The agreement provides:
(a)
Regulations may be applied to the Chinese residents only;
(b)
Only the Shanghai municipal police shall be used for the enforcement of the regulations;
(c)
Shanghai Municipal Council will undertake public prosecution of Chinese offenders against the regulations on condition that 30 days’ notice of intention to prosecute be given through the medium of Chinese press, that no action shall be retroactive and that these prosecutions be in the control and discretion of the municipal advocate.
2.
If diplomatic body approves, the agreement will be made effective by the exchange of notes between the Senior Consul and the Director General of the administration. Senior Consul states that “in manifesting receptivity to the present request of the Chinese authorities, the consular body is acting in consonance with its policy of facilitating the enforcement of valid taxes of the Chinese Government upon its citizens in the International Settlement provided the integrity of the Settlement administration is not impinged thereby [apparent omission] the proposed arrangement has the cordial approval of the foreign tobacco interest in the Settlement.
3.
Unless the Department objects the Legation will concur in this agreement.
For the Minister:
Perkins