893.51/4419: Telegram

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

226. Your telegram No. 321, September 22, 1 p.m.

With reference to the request for releases of customs funds to the Canton Government the Department maintains its previous position that the Diplomatic Body deals with customs surpluses only as trustees for the recognized Government of China.

As to the proposed suppression of Custom Houses in territory controlled by Canton and the levying on foreign merchandise of taxes in lieu of import and export duties, this Government would of course regard such action as a subversion of the treaty basis of foreign trade with China.

Hughes