Copies of the existing treaties containing the provisions affected by the new treaty are enclosed.23 It is believed that by the signing of this treaty a benefit has been conferred upon all concerned, in that, while safeguarding American interests and doing no injury to the interests of any other country, the way has been pointed and a model has been provided for a procedure whereby the Powers may relinquish their so-called "control" over China's tariff. It is believed, moreover, that this action is in conformity with the traditional American policy of friendship toward the Chinese nation. Respectfully submitted: FRANK B. KELLOGG PROPOSED TREATY OF ARBITRATION BETWEEN THE UNITED STATES AND CHINA 711.9312 A/2 The Secretary of State to the Chinese Minister (Sze) WASHINGTON, December 21, 1928. SIR: I have the honor to transmit herewith, for the consideration of your Government and as a basis for negotiation, the draft of a treaty of arbitration between the Government of the United States and the National Government of the Republic of China.24 The proposed treaty is identical in effect with treaties of arbitration which were signed at Washington on February 2 [6] and May 5, 1928, by representatives of the United States and of France and Germany, respectively,25 and with similar treaties which have recently been concluded between the United States and other countries. It resembles in some respects the arbitration treaty concluded between the United States and many countries, including China, beginning in 1908,20 but represents, in the opinion of this Government, a defi Treaties between the United States and China relating to tariffs: July 3, 1844 (Malloy, Treaties, 1776–1909, vol. 1, p. 196); June 18, 1858 (ibid., p. 211); Nov. 8, 1858 (ibid., p. 222); Nov. 17, 1880 (ibid., p. 239); Oct. 8, 1903 (Foreign Relations, 1903, p. 91); Oct. 20, 1920 (ibid., 1921, vol. 1. 458). Treaty between the United States, China, and other powers, Feb. 6, 1922 (ibid., 1922, vol. I, p. 282). "Not printed. For treaty as signed at Washington, June 27, 1930, see Department of State Treaty Series No. 857. 25 20 Post, pp. 816 and 867. For text of treaty with China, signed Oct. 8, 1908, see Foreign Relations, 1909, p. 93. nite advance over the earlier formula. Within the past twelve months such treaties have been proposed to thirty-two countries and signed with eleven: Albania, Austria, Czechoslovakia, Denmark, Finland, Italy, Lithuania, Poland and Sweden, in addition to the two already mentioned. Negotiations with the countries with which the treaties have not already been signed are in progress. You will recall that the conciliation treaty between the United States and China, concluded September 15, 1914," is still in force. Similar conciliation treaties have been offered to twenty-two countries during the past twelve months, of which seven, namely, Albania, Austria, Czechoslovakia, Finland, Germany, Lithuania and Poland have been signed. The negotiations in respect of these treaties with the countries with which they have not already been signed are also in progress. I feel that the Governments of the United States and China have an opportunity, by adopting a treaty such as the one suggested herein, not only to promote further the friendly relations existing between the peoples of the two countries, but also to advance materially the cause of the pacific settlement of international disputes. If your Government concurs in this view and is prepared to negotiate a treaty along the lines of the draft transmitted herewith, I shall be glad to enter at once upon such discussion as may be necessary. Accept [etc.] FRANK B. KELLOGG 711.9312 A/5 The Chinese Minister (Sze) to the Secretary of State WASHINGTON, December 29, 1928. SIR: I have the honor to acknowledge the receipt of your note of December 21, 1928, enclosing, for the consideration of my Government and as a basis for negotiation, the draft of a treaty of arbitration between the National Government of the Republic of China and the Government of the United States. It affords me great pleasure to bring the provisions of this proposed treaty to the attention of my Government. Accept [etc.] 27 Foreign Relations, 1915, p. 41. SAO-KE ALFRED SZE EFFORTS OF THE UNITED STATES TO MEET SITUATION CREATED BY IMPOSITION IN CHINA OF TAXES IN CONFLICT WITH TREATY PROVISIONS 28 893.512/740: Telegram The Minister in China (MacMurray) to the Secretary of State PEKING, January 9, 1928-1 p. m. 13. 1. Following from Hankow: "January 6, 3 p. m. Fifty percent ad valorem tax on cigarettes became effective yesterday, pursuant to instructions from Nanking. Tobacco companies have been paying 122 percent. Request instructions whether protest should be lodged. American companies Peking claim impossible to continue business under this tax." 2. Lockhart 29 authorized to lodge protest, if he considers it advisable, bearing in mind the Department's 278, July 7, 2 p. m., 1927.30 MACMURRAY 893.512/801 The Minister in China (MacMurray) to the Consul General at at Tientsin (Gauss) 31 PEKING, January 10, 1928. SIR: I beg leave to advert to your despatch of November 29, 1927, enclosing copy of a communication addressed to you as Senior Consul by the Chairman of the Tientsin General Chamber of Commerce 32 regarding the consumption tax on luxuries which at that time it was believed would be put into effect in Peking on December 1, 1927. While the original intention of the Ministry of Finance to impose this tax has so far been successfully postponed by the resistance of the Chinese business classes, it is apprehended that the matter has not been dropped. If and when, therefore, the imposition of this tax again appears likely, it is my intention to take the matter up with my colleagues in the hope that joint or similar protests may be made. This action may possibly so far strengthen the Chinese commercial opposition as to enable it to prevent the tax. Towards the same end, you are authorized to make local protest, either singly or jointly, with your consular colleagues, whenever such a course 28 Continued from Foreign Relations, 1927, vol. 1, pp. 372-433. "Frank P. Lockhart, consul general at Hankow. 30 Foreign Relations, 1927, vol. II, p. 393. Copy transmitted to the Department by the Minister in China, without covering despatch; received April 18. appears to you as wise. You will, of course, inform the Legation of any such action when taken. I am [etc.] [File copy not signed] 893.512/742: Telegram The Minister in China (MacMurray) to the Secretary of State PEKING, January 11, 1928-4 p. m. [Received January 11-11:50 a. m.] 21. My 1080, December 12, 11 a. m. Following from consul general at Hankow: "January 5, 3 p. m. Special agreement concluded at Shanghai between Standard Oil Company and Nationalist authorities on December 12 last, for the payment of a special tax of 60 cents per unit on oil, is not being recognized here and company is still required to pay special tax of $1.00 per unit. Shanghai informed." MACMURRAY 693.003/807 The Minister in China (MacMurray) to the Secretary of State No. 1347 PEKING, January 12, 1928. SIR: I have the honor to enclose copy of despatch No. 5370, of December 21, 1927, received from the American Consulate General at Shanghai," in which is enclosed copy of a letter dated December 16, 1927, from the President of the American Chamber of Commerce at Shanghai, embodying a resolution passed by the Board of Directors of the Chamber at its meeting on December 16th. A copy of the letter above mentioned is enclosed.34 In my opinion, it would be unwise to arrive at any decision with regard to the question of making collections on other articles, as has been done in the past in the case of import duties on wine and tobacco products, until the specific need for such action has arisen, and Mr. Cunningham's 35 remarks with regard to the dangers that might result from such a practice have my approval. With regard to the retention of funds now in the hands of the American Consul General at Shanghai, composing lawful import duties on goods imported from the United States of America and collected by him from importers in Shanghai, and the possible payment of such funds to American citizens or firms, as a reimbursement for such amounts as they may now or hereafter be obliged to "Foreign Relations, 1927, vol. п, p. 432. "Not printed. "Edwin S. Cunningham, consul general at Shanghai. 237577-43-39 pay to military or political factions on account of illegal impositions, it is believed that the dangers attendant upon such a course far outweigh any practical advantages to be gained. A copy of this despatch is being forwarded to the American Consul General in Shanghai for his information, and the Department's instructions are respectfully requested as to the possibility of acceding to the request of the American Chamber of Commerce in Shanghai. I have [etc.] 893.512/748 : Telegram J. V. A. MACMURRAY The Minister in China (MacMurray) to the Secretary of State PEKING, January 16, 1928—1 p. m. 32. My 13, January 9, 1 p. m. [Received January 16—9:30 a. m.] 1. Following from consul general at Hankow: "[5] January 14, 11 a. m. Your 2, January 9, 1 p. m. Tobacco companies have been approached with a view to compromise arrangement on the 50 percent tax and there is some prospect that question will be settled on a basis of less than half of new tax provided certain cash advances are made. I am confidentially informed that Mr. Arthur Bassett on behalf of the British-American Tobacco Company is negotiating with the Nanking authorities at Shanghai for a special agreement on the basis of a tax of 221⁄2 per cent on cigarettes." 2. Repeated to Shanghai for confidential information. 893.512/794 MACMURRAY The Legation in China to the Chinese Ministry of Foreign Affairs "6 [No.] 00548 The American Legation presents its compliments to the Ministry of Foreign Affairs and has the honor to inform that Ministry of the receipt by it of letters from the American Chambers of Commerce in Peking and Tientsin, in which those bodies point out that the Luxury and Special Articles Tax, which it is proposed to put in force in Peking, will contravene the provisions of the treaties now in force and will adversely affect American trade. Accordingly, the American Legation has the honor very earnestly to request that the intention to put into effect this tax, which will injure American trade and violate existing treaty rights of American merchants, be abandoned. PEKING, January 20, 1928. 36 Copy transmitted to the Department by the Minister in China, without covering despatch; received April 6. |