893.512/1199: Telegram

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

108. Your 389, March 30, 1 p.m., in regard to dike surtaxes and wharfage dues in Hunan.

1.
In the light of the information available to the Department in regard to these taxes, the Department is still of the opinion that the attitude taken in its 249, July 27, 11 a.m.,45 paragraph 5, would appear to be correct. However, before making a decision in regard to the recommendation found in the Legation’s 389, March 30, 1 p.m., paragraph 2, the Department desires to obtain definite information concerning the history of the wharfage and dike surtaxes with particular reference to (1) whether both taxes have been collected from all foreigners; (2) whether any protests have been made or are contemplated by other interested powers; (3) whether the Standard Oil Company has paid wharfage taxes as stated in the communication dated January 4, from Ho Chien to the Consul General at Hankow;46 (4) the approximate total of both taxes per annum and approximate amount devoted to conservancy work; and (5) effect of taxes on American trade. The Department also desires to learn whether the production tax has been abolished in compliance with the instructions of the Nanking Government referred to in the note of March 21 from the Ministry of Foreign Affairs.
2.
The Department also suggests that the interested American firms be informed of the attitude of the Ministry of Foreign Affairs and be advised that, pending further consideration of the question by the Department (upon receipt of the information requested above) such firms must determine for themselves whether, in the existing situation, their interests render it expedient for them to pay the taxes under protest.
Castle