The Counselor of Embassy in China (Smyth) to the Secretary of State

908. In response Department’s 486, March 18, Embassy in detailed note 133 April 116 requested Foreign Office that Chinese Government exempt agencies of US Government and its officials throughout China from payment of taxes which are shifted to and paid by such agencies and officials. Subsequently, at request Consul General, Shanghai, Embassy requested Foreign Office instruct Shanghai Municipal Government [Page 1338] delay collection tax on rental development building for which Consulate had received tax bill covering first two quarters 1946 until decision reached on original request. Foreign Office agreed to suggestion and notified Shanghai Municipal Government to this effect.

In view of foregoing, Embassy believes action requested in Deptel 198, May 24, 7 p.m. should await reply of Chinese Government to representation already made.

Sent Department repeated Shanghai 376.

  1. Not printed.