125.8571/9–2949: Telegram

The Consul at Shanghai (McConaughy) to the Secretary of State

4112. Have today received follow-up notice on house tax for Glenline reading:

“It is found you have not yet paid house tax last period. Hope you will make payment in full immediately. Do not permit any further delay! This is important.”

Have written on bills for return to Bureau to effect property owned by US Government and used as offices by American Consulate General and question of liability of tax subject of correspondence Bureau and this office and case referred to Department of State. This seemed satisfy subordinate who brought notice. Am addressing letter to director reminding him of previous correspondence and stating since US Government adheres to internationally accepted principle one country does not tax property of other it considers itself not liable. Last sentence reads: “In the event that the local authorities require further information as to tax-exempt status those Government-owned properties I shall be pleased to discuss matter with you”.

Will write similar letters as further notices received.

McConaughy