58. Telegram 441 to Geneva1
441. For Johnson.
FYI. Internal Revenue Code provides no one depart from US without certificate of compliance with income tax obligations. In the case of such aliens as Chinese students, this is formality which would probably involve not more than ten to thirty minutes at some local office. These students either have no independent income or, if employed, there has been a withholding of income tax at source so that nothing is due and indeed if they leave before end of year, they would presumably be entitled to a rebate because they would get full year exemption.
Procedures would be slightly different but also simple in the case of alien who was working for himself. Our records indicate that this is not the case with reference to Chinese students but might of course be the case as regards other Chinese aliens. However, here the result would be presumably the same since income tax payments are required to be made quarterly on basis of estimate of income and departing aliens would get a full year exemption.
We would doubt whether foregoing requires you qualify statement [Facsimile Page 2] which you apparently made, as reported your 354, August 8, since no exit permit is in fact required and since this income tax requirement would as indicated normally be a formality. However, you will have to be judge whether or not your previous statement requires qualification in light of foregoing.
- Source: Department of State, Central Files, 611.93/8–1055. Confidential. Drafted by Hanes (S) and Dulles; cleared by Robertson.↩