Chinese Cigarette Manufacturers and Foreign Firms The following are-extracts from a very lengthy telegram sent to the Nanking Ministry of Finance by local Chinese cigarette merchant "We understand that the Ministry of Finance is negotiating with foreign cigarette companies for the eollection of the special cigarette tax, which was promulgated by the Nationalist "Government some months ago, We understand that the negotiations are progressing very favourably and that an agreement may. soon be reached. The Chinese cigarette merchants are very suspicious with regard to the matter, Last July, the special tax, {involving an increase of 50 per cent., was promulgated by mandate and the Chinese merchants'were compellto abide by it, but foreign mercants continually opposed it and Te-fused to recognize the power of the Nationalist Government. to enforce such a tax. However, it was enforefed and the result was that there was considerable smuggling, to the benefit of the foreign cigarette merchants, The tax bureaux closed their eyes to this action, Foreigners were, therefore, not subject to the tax and they did greater business, Dut the Chinese merchants were compelled to pay and so they sulfered. considerably. All hearts are Pained at such' unfair treatment, We hope that steps will be taken to rectify this, "As regards valuation, we learn that foreign cigarette companies do not value their goods on a proper basis. In order to avoid the pay ment of an excessive tax, they say that the value of their goods certain amount. while, of fact, it in considerably more "The Nationalist Governmen Aattering foreigners and it is partial towards foreign cigarette companies, The Chinese merchants are looked down upon and their sufferings of Mo consequence to the Nationalist Government. This ix not rood finance. The merchants pay. their taxes, but they have no sny in the Government, which 1s most umnfor~ tunate, We hope that this also will be changed, and that a Joint meet ing should be held to consider the question before further action is
Text read from the printed page and cleaned; old type leaves the occasional error.