893.102 H/490
The Chargé in China (Mayer) to the Secretary of State
[Received October 15.]
Sir: I have the honor to refer to the despatch of the American Consul at Harbin, No. 1548, of August 18, 1927, addressed to the Legation, entitled, “The Payment of Municipal Taxes at Harbin,” copy of which is stated to have been sent to the Department, and to enclose a copy of the Legation’s reply, dated August 27, 1927.65 It will be observed from this correspondence that Mr. Hanson is of the opinion that the present procedure by which Americans and American firms at Harbin make their voluntary contributions in lieu of business, apartment, and automobile taxes to the local municipality through the Consulate irritates the local Chinese authorities, and recommends that Americans in making contributions for the year 1927 make them direct to the municipality. Mr. Hanson adds that this would be done only after the rates have been pronounced by the Legation to be reasonable and with the understanding that agents of the municipality should not be permitted to invade the premises and inspect the books of Americans and American firms.
Mr. Hanson has been informed that this Mission is of the opinion that the present procedure by which American nationals make their payments in lieu of municipal taxes through the Consulate should be continued for the time being. I have further stated that, if and when the local Chinese authorities take up this matter with the American Consulate at Harbin, whether formally or informally, with the request that contributions be made directly to the municipality, the Legation will give the question further consideration.
It is believed that, as a matter of expediency, it is preferable that contributions be made through the Consulate at Harbin, as in the past. This procedure tends to encourage the making of proper returns by American citizens and to avoid disputes which might arise as a result of direct dealings between American nationals and Chinese officials, in connection with the payment of contributions. The Legation’s opinion is, of course, based purely on practical considerations, and if it is shown that the present arrangement causes undue friction, I shall not hesitate to recommend to Mr. Hanson that he advise American nationals to make payments direct under the conditions mentioned above, unless otherwise instructed by the Department.
I have [etc.]
- Neither despatch nor reply printed.↩