811.512394 Shipping/35

The Secretary of State to the Secretary of the Treasury (Morgenthau)

My Dear Mr. Secretary: There is enclosed a copy of a statement which was, on July 26, 1934, read to an officer of the Department by the Japanese Chargé d’Affaires.28 The statement relates to additional war profits tax which has been levied on three Japanese steamship companies, Toyo Kisen Kaisha, Nippon Yusen Kaisha and Osaka Shosen Kaisha, and concludes with an expression of hope that the time limit given for the payment of these taxes “will be extended until these questions are settled by the negotiations between the two Governments”.

The Japanese Chargé d’Affaires stated further that certain documents relating to the matter were being forwarded by mail from [Page 829] Tokyo to the Embassy at Washington, and he requested that adequate time be granted for the Japanese Government to present its case on the basis of those documents before action is taken by this Government on the basis of the Treasury Department’s notification of last June to the steamship companies.

The Department hopes, in view of the apparently complicated character of the question, that the Treasury Department may find it possible to give favorable consideration to the request of the Japanese Chargé d’Affaires that opportunity be given for a careful examination of the arguments which may be expected to be presented shortly by the Japanese Embassy.

Sincerely yours,

Cordell Hull
  1. Supra.