895.63 Or 4/48

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

No. 1340

Sir: I have the honor to refer to this Embassy’s despatch No. 992, dated October 2, 1934,1 in regard to the demand of the taxation officials of the Chosen Government General to examine the books of the Oriental Consolidated Mining Company, for the purpose of assessing income tax upon the employees of the Company, and to the Department’s instruction No. 645, dated December 3, 1934,2 authorizing the American Consul at Seoul to address a letter to the Chosen Government General on the subject.

According to a letter from the American Consul at Seoul dated May 17, 1935, (a copy of which was sent to the Department3) the Chosen Government General refuses to relinquish its claim to the right to examine the books for income taxation purposes, and the Consul suggests that, in order to avoid unpleasantness, the Company might keep a separate ledger of disbursements for salaries and exhibit this book voluntarily to the taxation authorities. If the Department perceives no objection to this procedure, the Embassy will instruct the Consul to suggest the plan to the Company.4

Respectfully yours,

Joseph C. Grew
  1. Foreign Relations, 1934, vol. iii, p. 824.
  2. Ibid., p. 826.
  3. Not printed.
  4. Instruction No. 828, August 26, to the Ambassador in Japan stated: “The Department perceives no objection to the proposed suggestion, and you are therefore authorized to instruct the Consul at Seoul to make this suggestion to the Oriental Consolidated Mining Company.”