701.0693/2–2147

The Consul General at Shanghai ( Davis ) to the Ambassador in China ( Stuart )2

No. 170

Sir: I have the honor to refer to Department’s telegram No. 2173 of November 29, 1946,3 to this office authorizing the Consulate General to apply for registration of and for a new deed of ownership covering former U. S. Consular Lot No. 2222, belonging to the United States Government, and located on Whangpoo Road, Shanghai.

The Consulate General accordingly, on February 17, 1947, submitted an application to the Bureau of Land Administration of Shanghai for the registration of the lot (including the shengkoed area subject to reclamation) in the name of the Government of the United States of America. A photographic copy of the original consular title deed was filed with the application and a receipt acknowledging the application was issued by the Land Bureau. The enclosed memorandum4 shows the details of the application as entered in the records of the Bureau of Land Administration.

As noted in the enclosed memorandum, a tax notice requesting payment of the Land Value Tax in the amount of CNC$2,583,720 was handed to Mr. Brown5 of this office. The Land Bureau was informed that this office could not undertake to pay the tax and that the question of payment would be referred to the Embassy and the Department of State for decision.

The Embassy is requested to take up with the Chinese Government the subject of payment of this tax and to ask for an exemption on the ground that it is a tax levied against the Government of the United States of America and is therefore improper. In this connection reference is made to the Department’s telegram No. 409 of March [Page 1359] 18, 1946 to Chungking,6 repeated to Shanghai, concerning taxes on leased government occupied properties.

Respectfully yours,

Monnett B. Davis
  1. Copy transmitted to the Department by the Consul General without covering despatch; received March 12.
  2. Foreign Relations, 1946, vol. x, p. 1333.
  3. Not printed.
  4. Stephen C. Brown, Consul at Shanghai.
  5. Sent to Chungking as telegram No. 486, repeated to Shanghai as No. 409; Foreign Relations, 1946, vol. x, p. 1335.