Page:United States Statutes at Large Volume 50 Part 2.djvu/707

 JAPAN-PERPETUAL LEASEHOLDS-MARCH 25, 1937 [Translation] ToKYO, March 25, 12 Showa (1937). EXCELLENCY: I have the honor to acknowledge the receipt of Your Excellency's Confirmation by Note of today's date in which Your Excellency has informed me as follows: On March 4, 1937, I had the pleasure to inform the Imperial Japanese Ministry of Foreign Affairs that the Government of the United States was prepared to accept a mutually satisfactory settle- ment of the perpetual lease system which originated in former treaties between the United States and Japan, and on that basis I now have the honor, under instructions from my Government, to confirm to Your Excellency the following understanding between the Government 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 leaseholds 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 registra- tion taxes in respect of lands under perpetual leases and buildings thereon. (2) That until the thirty-first day of the third month of the seventeenth 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 authori- ties for arrears of such disputed taxes as may still be uncollected. I have the honor to inform Your Excellency that I hereby confirm the above understanding for a final settlement of this question. I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration. NAOTAKE SATO His Excellency Mr. JOSEPH CLARK GREW, Ambassador Extraordinary and Plenipotentiary of the United States of America. 1615

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