Office of the Historian

125.7141/12–649: Telegram

The Secretary of State to the Consul General at Peiping (Clubb)52

Washington, December 16, 1949—7 p. m.

909. Urtel 2227, Dec 6. Position taken Depcirtel Aug 26 still prevails. If tax bills reed they shld be returned with statement ConGen assumes bills sent in error. In returning bills ConGen shld state reason for exception viz., “taxes not payable since a sovereign Govt shld not be taxed on property owned by that Govt and used for Govt purposes”.

ConGen in its ltrs to Shanghai land admin bureau stated US Govt adheres to internationally accepted principle one country does not tax property of another, US Govt considers itself not liable for payment of taxes.

Suggest you handle tax problem this basis but keep Dept fully informed.

Sent Peiping, rptd Shanghai, Nanking.

Acheson
  1. Repeated to the Consul General at Shanghai as No. 2438 and to the Embassy at Nanking as No. 1300.↩