893.512/1169
The American Minister in China ( Johnson ) to the Chinese Minister for Foreign Affairs ( C. T. Wang )63
Excellency: I have the honor to inform Your Excellency that the American Consul General at Hankow reports the recent imposition of certain taxes in Hunan, namely, wharfage dues, a dike surtax, and a production tax, which are collected in the form of a surtax on all imports and exports. A copy of the proclamation issued by the Provincial Government regarding the collection of wharfage dues and the dike surtax is enclosed61 for the information of Your Excellency.
Acting under instructions from my Government, the American Consul General at Hankow protested against the collection of such taxes, and under date of August 5, 1931, addressed a formal communication, a copy of which is enclosed,61 to the Chairman of the Hunan Provincial Government. A copy of General Ho Chien’s reply of September 4, 1931, is also enclosed.61
Inasmuch as these taxes are definite surtaxes on imports and exports, I must strongly protest against their collection, in so far as American firms are concerned. Furthermore, I desire to call Your Excellency’s attention to the fact that in a proclamation dated July [Page 1006] 20, 1927, the Chinese Government announced its intention of abolishing all forms of taxes levied in the name of “likin” as well as destination taxes, and that this policy was confirmed in Annex III of the Sino-British Tariff Treaty of 1928, and by a Supplementary Mandate dated October 6, 1930. The abolition was made applicable to all parts of China and became effective on January 1, 1931. My Government feels, therefore, that in view of the history of the negotiations whereby there were concluded the treaties establishing China’s tariff autonomy and of the provisions of those treaties relating to national tariffs, uniformity of duties on all Chinese frontiers, and most-favored-nation treatment, and in view particularly of the items cited above, it would appear entirely out of harmony with the letter and the spirit of the pronouncements and pledges of the Chinese Government for that Government or its provinces or municipalities to establish provincial import duties or to reestablish under any name or form taxes equivalent thereto or taxes which have been abolished in pursuance of pledges. I, therefore, have the honor to request that instructions be issued to the Chairman of the Hunan Provincial Government to stop the collection of these imposts on shipments of American merchants.
I avail myself [etc.]