893.5034 Business Tax/25: Telegram

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

367. Reference Legation’s 267, May 13 [11], 5 p.m. and despatches of May 12 and June 1st.36 American Consul General at Nanking on June 11 reported new business tax law passed by Legislative Yuan on June 6th but not promulgated by State Council. Ministry of Foreign Affairs in note dated July [June] 3 states that tax designed to compensate losses resulting from abolition of likin, that it does not contravene principles of taxation and is applied equally and without discrimination to Chinese and foreign merchants. Ministry requests that American merchants be entrusted [instructed] to pay tax as imposed by provinces under the “General Principles” and “Supplementary Rule[s]” previously reported to the Department.

Text of business tax law obtained unofficially from Legislative Yuan by Consul General Peck and being forwarded to the Department in pouch leaving tomorrow.37

For the Minister:
Entert
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