500.A4e/600: Telegram

The Secretary of State to the American Delegation

123. Your Conference No. 44 and Department’s 119 of June 14, 6 p.m.76

Colonel Peel called upon the Chief of the Far Eastern Division on the afternoon of the 17th. He stated, among other things, that a difference of opinion had grown up between the British and American Delegations at the Conference over the question of debt consolidation, the British feeling that the plan worked out by the [Page 760] Americans and the Japanese placed too heavy a burden upon the customs revenues. He stated that British Government was unwilling to consent to a plan which might become so burdensome upon the customs revenue as to absorb the greater part of that revenue and make it impossible for the British Government in the future to support the customs régime. No comment was made to Colonel Peel’s remarks other than to say that we hoped to continue negotiations until some equitable and mutually satisfactory settlement had been reached.
Has question of bearing of any scheme for debt consolidation upon future of customs régime been considered by you? Customs Administration is already unpopular in China although created by China itself. Any question of necessity of supporting Customs Administration by foreign force to insure fulfillment of arrangement for meeting interest of consolidated debt would not meet with popular support in the United States.
  1. Latter not printed.