The Ambassador in China (Johnson) to the Secretary of State
[Received 2:15 p.m.]
16. Department’s 229, September 24, 6 p.m. to Peiping18 and related correspondence on Chinese income tax.
Following is the text of a formal note dated December 30 from the Chinese Minister for Foreign Affairs:19
“Excellency: I have the honor to acknowledge the receipt of your formal note of September 18, 1936,18 in regard to the levying of the income tax by the Chinese Government, [that] the provisional regulations governing the income tax are not applicable to Americans in China. I have noted the above.
It is observed that the provisional income tax regulations and the detailed rules for their enforcement were promulgated for enforcement by order of the National Government in accordance with legal procedure. On the [basis?] of international law, since the people of the various nations resident in China receive protection from the Chinese Government they should naturally pay taxes to the Chinese Government in accordance with the law: of this there is not the least doubt. The full levying of the income tax is now shortly to begin, and I have the honor to request Your Excellency to refer to my note of August 25, 193620 and order all people of your country residing in China to pay the income tax in accordance with the regulations.
I avail myself, et cetera”.