893.5123/6: Telegram

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

401. The Embassy at Nanking has transmitted under cover of a despatch dated July 31 a translation of the Chinese “Provisional Income Tax Regulations.” Copies of the despatch were sent directly to the Department and should be received within the next week or 10 days.75

The regulations were promulgated by a National Government mandate dated July 21 of this year. The date of enforcement has not yet been fixed but it is understood that the Chinese authorities plan to enforce the regulations as of September 1. No communication on the subject has yet been received from the Foreign Office by this Embassy or the other diplomatic missions here, but it is understood that the Foreign Office will shortly address the various missions, requesting that the tax be paid by the foreign nationals concerned.

The British Embassy by authority states that it is suggesting to the British Chargé d’Affaires, now at Peitaiho, that, if a communication is received from the Foreign Office, he reply that the matter has been referred to the British Foreign Office. The British Embassy here is suggesting to the Chargé d’Affaires that he recommend to the British Foreign Office that the Chinese authorities be informed that the British Government cannot consent to the payment of the tax by British [Page 629] subjects unless it is also paid by other foreign nationals. I believe that we might adopt a similar attitude.

I will telegraph the Department any further information received concerning the views of the various diplomatic missions and will report if and when a note is received from the Foreign Office. I will appreciate receiving the Department’s instructions when it has received and considered Nanking’s despatch mentioned above.

Johnson
  1. Not printed.