Page:United States Statutes at Large Volume 50 Part 2.djvu/703

 JAPAN-PERPETUAL LEASEHOLDS-MARCH 25, 1937 Arrangement between the United States of America and Japanrespecting perpetual leaseholds. Effected by exchange of notes, signed March 25, 1937. The American Ambassador (Grew) to the Japanese Minister for Foreign Affairs (Sato) March 25, 1937 [E.A. S. No. 104] EMBASSY OF THE UNITED STATES OF AMERICA, Tokyo, March 25, 1937 (12 Showa). EXCELLENCY: On March 4, 1937, I had the pleasure to inform the Imperial Jap- anese Ministry of Foreign Affairs that the Government of the United States was prepared to accept a mutually satisfactory settlement of the perpetual lease system which originated in former treaties be- tween the United States and Japan, and on that basis I now have the honor, under instructions from my Governement 1, to confirm to Your Excellency the following understanding between the Govern- ment of the United States of America and the Imperial Japanese Government: (1) That the said system of perpetual leases shall come to an end on the first day of the fourth month of the seventeenth year of Showa, corresponding to the 1st day of April, 1942, when the lease- holds shall without compensation be converted into the rights of ownership in accordance with the provisions of Japanese laws and ordinances. Such conversion shall be effected free of registration taxes in respect of lands under perpetual leases and buildings thereon. (2) That until the thirty-first day of the third month of the sev- enteenth year of Showa, corresponding to the 31st day of March, 1942, the present position as regards tax exemptions shall be main- tained, and no further claims shall be made by the Japanese author- ities for arrears of such disputed taxes as may still be uncollected. Arrangement with Japan for settlement of the perpetual lease system. While requesting Your Excellency to be good enough to confirm the above understanding, I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration. JOSEPH C. GREW His Excellency Mr. NAOTAKE SATO, His Imperial Japanese Majesty's Minister for Foreign Affairs, etc., etc., etc. 1 So in original. No. 705

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