693.116/122: Telegram

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

39. Legation’s 5, January 3, 3 p.m.21 Following from American Consul General at Canton to the Legation and Nanking:

“January 15, 5 p.m. Inspector General of Foreign Affairs informed British Consul General and myself today that foreign oil companies are on the same basis as native companies in respect to deferred payment tax plan, but that native distillers are now granted subsidy from the provincial treasury. Inspector General said that he had been promised a letter on these points from the Commissioner of Finance and upon its receipt he would confirm these statements to us in writing and also set forth the channel on which the subsidy is granted.”

The Legation is taking no action in the matter pending receipt of information as to the nature of subsidy proposed.

Johnson