893.5034 Business Tax/52: Telegram

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

1061. Legation’s mail despatch No. 1659 [1669], August 4. Following has been received from the Consul General at Hankow:

“September 2, noon.

1.
During past 2 weeks American firms, with the exception of the petroleum companies and companies in the French Concession, have been receiving undated notices from the business tax bureau demanding that they register and begin paying business tax within 3 days.
2.
The French and Japanese Consuls inform me that they have been requested by the Chinese authorities to permit the collection of the business tax from Chinese merchants in their respective Concessions. They have not been requested to permit the collecting of tax from foreign merchants in their Concessions. They have replied that they have no objection to the voluntary payment of the tax by Chinese merchants residing in their Concessions but that they would not permit the use of any coercive measures by Chinese officials against Chinese merchants residing in their Concessions.
3.
The American Chamber of Commerce of Hankow discussed the business tax at a meeting on August 30 and decided that American firms shall ignore demand received. The Consulate General will await actual attempt to collect the tax from American firms before making further representations.”

Johnson