711.008 North Pacific/437: Telegram
The Secretary of State to the Ambassador in Japan (Grew)
11. Your 19, January 11, 6 p.m., and 21, January 12, noon.39 With reference to the case of Onoda, the Sumitomo Bank manager at Honolulu, Labor Department states that Onoda was denied admission as a treaty alien under section 3 (6) of the Act of 192440 on the ground that Sumitomo Bank at Honolulu is a domestic corporation, only one third of the business of which is of an international character, but that the case is now before that Department for review.
With regard to the question of the inclusion in the dutiable value of Japanese piece goods of rebated Japanese taxes, information obtained from the Treasury Department indicates that there has been presented to that Department during the past year one case involving the status of the 10 percent control fee first imposed in Japan in October 1937. As this fee was said to have been entirely abolished about July 1, 1938, this question is no longer a source of difficulty.
There has come to the Department’s attention still another ease of a character which appears to have given grounds for misapprehensions. This case involved denial to certain Japanese in the United States of the personal exemptions allowable to residents in the assessment of income tax. In this case the action of the Internal Revenue authorities is now under review.
These cases are unrelated, have arisen on purely technical grounds, and have been and are being considered on their merits.