895.63 Or 4/43

The Secretary of State to the Ambassador in Japan (Grew)

No. 645

Sir: Receipt is acknowledged of the Embassy’s despatch No. 992, under date October 2, 1934, transmitting letters from the Consulate General at Seoul in regard to levying of income tax upon the employees of the Oriental Consolidated Mining Company and inspection of the Company’s books by the Chosen authorities.

The Department is of the opinion that in general the proposed reply of the American Consul at Seoul to the Chosen Government General is reasonably warranted and that its transmission may properly be authorized. However, it is desired that the second paragraph, which in the draft prepared at the Consulate General begins:

“The Consulate General does not dispute the Government General’s view …”

be amended to read:

“In deference to the views of the Government General, the Consulate General is not disposed to insist on the suggested interpretation favoring the exemption of the employees of the Company from individual income tax. With regard to the inspection of the Company’s books, however, …”

Very truly yours,

For the Secretary of State:
William Phillips