893.512/1147: Telegram
The Minister in China ( Johnson ) to the Acting Secretary of State
380. [1.] Following from American Consul at Foochow:
“Provincial Government contemplating levying a 25 percent surtax on customs duties for provincial needs. In the event such a surtax is [Page 994] put into effect what attitude does the Legation desire me to adopt? The French, Japanese, and British Consuls are sending similar telegrams to their respective Ministers.[”]
and Legation with Department’s approval proposes to send following reply to Foochow:
“Legation has been informed that if tax is actually imposed upon foreign firms British and French Legations will instruct their Consuls to lodge protest with Provincial authorities on grounds that it is in violation of principle of uniformity of customs tariff on all land and maritime frontiers as provided in annexes to British confederation [sic] tariff treaties [treaty] of 1928.39 In event such protests are lodged, you may insist that American firms shall be accorded nondiscriminatory treatment as compared with other foreign and Chinese firms.”
2. Following from American Consul at Hankow:
“June 27, noon. A bureau has been established at Changteh, Hunan, to collect a ‘products tax’. The American firm Werner G. Smith has been assessed 54 Mexican cents per picul on a shipment of 14,000 piculs of wood oil. In view of National Government’s recent increase of export duties and lack of any official notice of establishment of bureau I request instructions whether I may lodge protest with Hunan Provincial Government in which event Legation may also wish to consider lodging protest with Nanking authorities.”
Tax being only upon Chinese export products, Legation perceives no ground for protest unless upon an additional pertinent basis indicated in paragraph 1 above and/or on grounds that lack of notice of tax imposes hardship on American firm concerned. Department’s instructions requested.
3. In this general regard, the Department is also referred to Tientsin’s despatch of May 13, 1931, to the Legation (copies to the Department in May 29 pouch)40 regarding unprotested Hopei provincial taxes on imports and exports.