893.512/866: Telegram

The Minister in China (MacMurray) to the Secretary of State

785. Legation’s 600, December 6, 4 p.m.;74 and Department’s 290, December 8, 2 [6] p.m., 1926.75

1.
Following from Canton:

“October 18, 11 a.m. Alleging that special tax stamp had not been properly affixed on containers, tax collectors at Samshui seized two Standard Oil Company lighters and cargoes on 11th and subsequently brought them to Canton. Lighters are bona fide American vessels, flying American flag and in my opinion charges are trivial and without substantial foundation.

As prerequisite to releasing craft, Chinese authorities now demand that company representative shall sign receipt practically admitting charges and promising to submit to decision of local authorities including possible fine and/or confiscation. Manager very properly refuses to do this, and we reached a deadlock with Chinese assuming very arbitrary attitude.

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I fear we shall not be able to effect release of lighters without some show of force which in my opinion would be warranted in the circumstances. Lighters are lying off Canton bund with American flags flying but guarded by small armed launch. Favor sending our gunboat Guam alongside, with instructions to take no action for the time being other than to prevent removal of lighters or cargo. I believe Chinese would then realize seriousness of their action and adopt more reasonable attitude. However, I recognize the danger of showing force and shall not ask the Navy to act without your approval. In this connection see my despatch 731, September 17,76 regarding British attitude in these cases.

I beg Legation to reply as soon as possible because Chinese may decide to remove cargo. I am keeping commander of Sacramento fully informed.”

2.
In view of the urgency of this case I have today instructed Jenkins as follows:

“October 19, 4 p.m. Your October 18, 11 a.m. The case you report does not seem to imply a question of the use of force to resist illegal taxation, there being no question of the payment of taxes involved but is rather one in which the Chinese are attempting to enforce regulations under a private agreement through direct forceful action against vessels under the American flag. I therefore concur in your opinion that it would be advisable to emphasize the seriousness of the incident by having a naval vessel stand by the lighters to prevent removal of them or their cargo. This would seem to be in accordance with Legation’s mail instruction to you of December 13, 1926.”

MacMurray
  1. Telegram in two sections.
  2. Foreign Relations, 1926, vol. i, p. 907.
  3. ibid., p. 908.
  4. Not printed.