693.116/121: Telegram
The Minister in China (Johnson) to the Acting Secretary of State
[Received January 3—8 a.m.]
5. Department’s 374, November 13, 6 p.m.4 Following from Consul General, Canton, to the Legation and Nanking:
“December 29, 11 a.m. Present status of kerosene question is as follows: Registration of foreign oil companies effected December 19. Liquid fuel for refining is being imported without restrictions. Although companies have not yet begun to market oil refined from these imports, they do not anticipate that sales will be restricted if they pay the prescribed tax. The tax regulations, as published in the press, however, provide for a system whereby the tax, amounting to $3 national currency per 10 gallons, can be paid for with debentures purchased for one-third cash down. The foreign companies are apprehensive that this means that the native companies will be relieved of the necessity of paying the balance, thus resulting in a discrimination in their favor to the extent of $2 per 10 gallons. The foreign companies are now planning to institute test cases to determine how the regulations will be enforced in practice.”
- Not printed.↩