893.512/1524: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received August 8—7 a.m.]
400. Following telegram has been received from Peiping:
“August 5, 5 p.m. Chefoo asks Embassy’s instruction in regard to a request of local police chief that Americans there pay automobile license fee of Chinese dollars 50 and bicycle fee of Chinese dollars 5 per annum, such fees allegedly to be applied to road repairs. Roberts feels that Americans should not be advised to pay these fees because they already voluntarily contribute to road repairing, because foreigners in principal residential sections paid in 1937 over Chinese dollars 5,000 as compared to some Chinese dollars 8,000 assessed Chinese residents of the district, and because police will not give assurance that license fees will entitle licensees to operate vehicles throughout the province without payment of supplemental tax.
- 2.
- Embassy does not consider the license fees in question to be unreasonable and believes that they fall within the purview of Legation circular 176, July 6, 1927, which states the Department’s opinion that American citizens should be advised to pay as voluntary contributions municipal tax levied upon Chinese and foreigners when rates are reasonable. We do not feel that payments of such fees should be refused because of the road repair contributions mentioned which if again requested for following current year might be considered a question to be studied on its own merits.
- 3.
- Kindly instruct. Sent to the Ambassador only.”
In my opinion if tax equitable and funds collected are used for road repairs, et cetera, Americans should be advised to pay tax as a voluntary contribution. If Department approves, I shall so instruct Chefoo.