811.512394 Shipping/42

The Chief of the Division of Far Eastern Affairs ( Hornbeck ) to the Ambassador in Japan ( Grew )

Dear Mr. Grew: I have your letter of August 24, 1934, with enclosures, in regard to income taxes assessed on Japanese shipping companies by the United States Treasury authorities.

[Page 838]

For a number of weeks this question has had our thoughtful attention. We have received a number of communications from the Japanese Embassy here on this subject and have transmitted the communications to the Treasury Department for consideration. In addition, prior to the receipt of your letter, Mr. Phillips39 talked to the Secretary of the Treasury and subsequent to the receipt of your letter called on the Under Secretary of the Treasury, in both conversations stressing the point that this Department does not wish to influence in any way the decisions arrived at by the competent authorities of this Government in regard to the technical aspects of the case but that we do wish to emphasize that there are involved in the matter also important questions of major policy.

We expect to continue to follow developments with care.

Yours sincerely,

S. K. Hornbeck
  1. William Phillips, Under Secretary of State.