893.51/2584: Telegram
The Secretary of State to the Ambassador in France (Wallace)
9387. C. L. L. Williams, formerly of our consular service in China, was recently appointed by the Chinese Government as foreign co-director of the Wine and Tobacco Revenue. Peking Legation now telegraphs as follows:
[Here follows telegram of December 18, 6 p.m., from the Chargé in China, printed on page 547.]
The Department is replying in substance:
[Here follows substance of telegram of December 20, 4 p.m., to the Chargé in China, printed supra.]
The Department is aware that there exist certain liens upon the proceeds of the wine and tobacco revenues of China as securities for loans made by the Banque de l’Indo-Chine and the Banque Industrielle de Chine but is at a loss to understand upon what basis the French Government claims a right of supervision over any reorganization of the administration of these revenues.
You will please inquire of the Foreign Office whether it is by its direction that the French Minister at Peking has protested against the appointment of Williams and if so upon what grounds. You will make it clear that this Government supports the appointment of an American not as a matter of contractual right derived from the Pacific Development Corporation loan agreement (from which this Government has withheld its approval as indicated in Department’s November 29, 4 p.m.60) but as a matter of the Chinese Government’s freedom to avail itself of American assistance in the reorganization of this source of revenue as it avails itself of other foreign assistance in various branches of its administration—notably in the case of the postal service which is under French supervision and the Maritime Customs and Salt Administration which are under the supervision of British chiefs with assistants of French and other nationalities.