rassment under different circumstances in the future, I venture to recommend that I be authorized to address to the Minister for Foreign Affairs, on the occasion of the exchange of ratifications of our treaty, a note recalling that, while by its terms it is to become operative four months subsequently to the exchange of ratifications, the executive branch in the meantime is not disposed to initiate any protest against the application by China of the new import tariff 12 notwithstanding the fact that as regards the United States it has as yet no legal basis. 2. The representatives of Germany, Great Britain, France and Japan have no occasion for taking such action since each of those countries either by the fulfillment of the prescribed procedure or by other formal action has acquiesced in the enforcement of the new tariff. Other diplomatic colleagues likewise consider it advisable to notify the Chinese Government of the fact that their respective countries have adopted ex gratia a passive attitude toward the application of the new tariff. MACMURRAY 611.9331/148: Telegram The Chinese Minister for Foreign Affairs (C. T. Wang) to the Secretary of State SHANGHAI, February 23, 1929. [Received 9:05 a. m.] On the occasion of the mutual ratification 13 of the new Sino-American tariff treaty I have the honor to express the hope that the bond of friendship hitherto uniting the two countries will be yet further strengthened and that both Governments will be actuated by the same spirit of mutual understanding and cooperation in dealing with other important questions. CHENG TING WANG 611.9331/149: Telegram The Minister in China (MacMurray) to the Secretary of State PEKING, February 24, 1929-3 p. m. [Received February 24-10:35 a. m.1] 136. 1. Following telegram from Soong, Minister of Finance, was received yesterday: 12 For previous correspondence regarding new Chinese import tariff, see Foreign Relations, 1928, vol. 1, pp. 370 ff. Ratifications exchanged at Washington February 20, 1929. 24 Telegram in two sections. "On the occasion of the ratification of the Sino-American tariff treaty in Washington I wish to felicitate Your Excellency for having so ably represented your nation in taking the leadership of recognizing China's right to tariff autonomy, and in according formal recognition to the Nationalist Government. The wisdom of the step is today evident, what had been misinterpreted by some in the beginning as an empty gesture is now generally admitted to be a bold act of statesmanship which has contributed much to the actual and speedy accomplishment of China's tariff autonomy and in placing the relations of China with the outside world on a proper basis." I replied as follows: "February 23rd. I cordially appreciate your very courteous telegram on the occasion of the exchange of ratifications of the tariff treaty. Although you are generous enough to attribute the credit to me, I cannot but recall that it was you who perceived the essentials involved, and brought the project into realization. It is gratifying to believe that the conclusion of the treaty has been of assistance to your Government, and I sincerely hope that the attainments of China's tariff autonomy will contribute to the development of peaceful commercial intercourse and to the prosperity of the Chinese people." 611.9331/148: Telegram MACMURRAY The Secretary of State to the Chinese Minister for Foreign Affairs (C. T. Wang) WASHINGTON, February 25, 1929. I have the honor to thank you for your telegraphic message of February 23d, referring to the exchange, effected on February 20, 1929, of ratifications of the treaty signed on July 25, 1928, for the regulation of tariff relations between China and the United States. The conclusion of this treaty evidences the spirit of friendliness and mutual understanding characterizing the relations between our respective countries, which I hope will be continued. FRANK B. KELLOGG 611.9331/149: Telegram The Secretary of State to the Consul General at Shanghai (Cunningham) WASHINGTON, February 25, 1929-4 p. m. For MacMurray: Your 136, February 24, 3 p. m. Department is pleased with spirit and substance of Soong's telegram and your reply and is publishing both. You may so inform Nanking officials. 323428-43—vol. II-59 The Secretary is replying in personal telegram to personal telegram from Wang. These telegrams being published. KELLOGG 611.9331/147: Telegram The Secretary of State to the Consul General at Shanghai (Cunningham) WASHINGTON, March 1, 1929-10 a. m. For MacMurray: Your 133, February 23, 4 p. m.,15 paragraph 2. Refer to your 82, February 1, 8 p. m.,15 paragraph 2 and Department's 30, January 24, 11 a. m. It was and is the Department's view that it would be inexpedient to make any official protest against the going into effect of the tariff schedule on February 1, and that we should rest content with making. in advance of the going into effect, the adverse comment upon rates which was outlined in Department's Number 30. The Department does not believe that it would best serve our purposes, all factors being considered, to send now a note such as is suggested in your 104.18 You may, in conversation with Wang and other Chinese officials, stress the fact that, although it might rightfully have done so, your Government did not choose in this instance, in view of the circumstances, to protest. You may say that it hoped that the Chinese would themselves recognize the impropriety of acting in disregard of the treaty rights, both old and new, of Powers which had shown their good will by the signing of the new treaties. You may say that, although no foreign government apparently has seen fit to raise the issue of legality, nevertheless the Chinese Government's action in this matter has created a distinctly unfavorable impression. For your information, the view that this would probably be the case was imparted here unofficially, in conversations, to the Chinese Minister and Dr. Wu," before February 1st. KELLOGG 15 Not printed. 16 Telegram of February 13, from the Minister in China, p. 787. 17 Dr. C. C. Wu, Special Representative in the United States of the National Government of China. EFFORTS OF THE UNITED STATES TO MEET SITUATION CREATED BY IMPOSITION IN CHINA OF TAXES CONSIDERED UNFAIR TO AMERICAN TRADE" 893.512/899: Telegram The Minister in China (MacMurray) to the Secretary of State PEKING, January 3, 1929-4 p. m. [Received January 3-3:20 p.m.19] 2. Legation's 828, November 13, 8 p. m.20 Department's 384, November 15, 1 p. m.21 Upon the suggestion of the American Consul General at Canton, I earnestly recommend that I be authorized to forward the following note to the Nationalist authorities in Nanking as from the Department: "Excellency: With reference to my note number 692 of November 13, 1928, I have the honor by direction of my Government to bring to the attention of Your Excellency the following message: 'With reference to the illegal seizure and detentions at Canton on the part of the local authorities of two American vessels, the property of the Standard Oil Company, it is to be noted that although these vessels have at last been released, the American company concerned was deprived of the use of its property for a period of two months as the result of the arbitrary action of the Canton authorities. Not only were the essential rights of the company violated through the seizure of the vessels but the Finance Department of the Canton Government undertook to try the issues involved and to levy a heavy fine upon the company in patent contravention of existing treaties. The attitude furthermore of the Cantonese authorities in their unwillingness throughout this incident readily to meet and confer with the local representative of the American Government contributed in no small degree to the protracted delay in the release of the vessels. The American Government cannot but record its profound dissatisfaction with the action of the Cantonese authorities in this matter, and to express hope that the Chinese Government will take effective measures to prevent any repetition [of] such an incident."" 893.512/899: Telegram MACMURRAY The Secretary of State to the Minister in China (MacMurray) 8. Your 2, January 3, 4 p. m. WASHINGTON, January 5, 1929-6 p. m. 1. Draft of proposed note is approved. 2. The Department's records do not clearly indicate whether the particular taxes involved in this case are paid by virtue of a private 18 For previous correspondence regarding Chinese taxes, see Foreign Relations, 1928, vol. II, pp. 494 ff. "Telegram in two sections. tax agreement or are paid by the public generally. The Department assumes that consular officers are careful to avoid basing their representations on the stipulations of private agreements for the payment of extra treaty taxes. KELLOGG 893.512/917 The Minister in China (MacMurray) to the Consul at Hankow (Adams) 22 PEKING, January 10, 1929. SIR: I beg leave to acknowledge the receipt of your despatch L. No. 599, of December 22, 1928,23 concerning the increased tobacco tax instituted by the Chinese authorities in Hankow, in which you enclose a copy of a letter received from the Hankow office of the Liggett & Myers Tobacco Company (China) Ltd., in which it is alleged that the competitors of the American company had, in some manner, obtained advance notice of the increased tax and had immediately, before its imposition, forwarded large stocks to their dealers, thus placing the American firm at a serious disadvantage. It would appear to the Legation that unless Messrs. Liggett & Myers Tobacco Company (China) Ltd., are in a position to show that their competitors received some form of official notice of this increased tax, the Consulate General would not be justified in lodging a formal protest in the matter. However, in view of the fact that the business of the American firm has been unfairly affected by the lack of notice of the imposition of such tax by the local authorities, you are authorized, unofficially, to use your good offices in taking up the matter with the local authorities pointing out the fact that the imposition of this tax, as at present contemplated by them, is operating unfairly against the American company. It is suggested that, at the same time, you might endeavor informally to discuss some means whereby the enforcement of this tax against the products of the American company might be delayed until Messrs. Liggett & Myers Tobacco Company (China) Ltd., have been given a fair opportunity to receive sufficient stocks to place them on an equal basis with their competitors. I am [etc.] J. V. A. MACMURRAY "Copy transmitted to the Department by the Minister in his despatch No. 1849, January 10; received February 16, 1929. "Not printed. |