894.0144/16

The Consul General at Mukden (Pontius) to the Secretary of State

No. 147

Sir: Referring to Department instruction dated November 19, 1920 (File No. 894.0144/14) written in connection with the voluntary payment of a tax for municipal purposes by American citizens residing in the South Manchuria Railway Settlement at Mukden, I have the honor to state that on December 30, 1920 the attitude of [Page 33] the Department in this connection was communicated to the officials of the South Manchuria Railway through the local Japanese Consul General.

After a considerable interval the railway authorities replied as is shown in a letter quoted hereunder which was received from the local Japanese Consul General under date of April 8, 1921:

“In continuation of my acknowledgment of January 4, 1921, I have the honour to inform you that the following reply was received from the South Manchuria Railway Company (S.M.R. Co.):

‘The South Manchuria Railway Company have no objection to the voluntary contribution by American residents in the railway settlement at Mukden, of 12% assessment based upon the rental value of property occupied by them, which is directly payable to the railway authorities in Mukden. This Company take note that this arrangement shall, in its nature, be tentative.

‘It will, however, be understood that, in thus consenting to the American voluntary payment, the rights and power of this company in the railway zone shall not be prejudiced by this arrangement.’”

I have [etc.]

Albert W. Pontius