893.512/672: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received September 20—2:45 p.m.]
Your September 17, 4 p.m.
1. British, Japanese, French and other consulates are now accepting deposit of import duties and other charges tendered to and refused by the Customs bank on consignments of tobacco products, wines, beer and liqueur as condition precedent to release of such cargo by godown keepers of their nationality.
2. Duties so accepted, for example by the British consulate general, are deposited in local branch of British bank, in a special account in the name of the consul general. In each instance the Commissioner of Customs is informed by the consulate general of the tender, refusal and deposit of the duties and advised that they are held at his disposition. The duty memoranda, which are issued by the Customs and show the treaty import duty and the wharfage and conservancy dues, are retained by the consulate general for accounting purposes. It is naturally impossible to make in advance any arrangement for final accounting to the Chinese Government. When the Customs indicate their willingness to accept the duties so deposited there should [Page 411] be no difficulty in accounting for them from the duty memoranda and other records kept by the consulate general.
Duties accepted by the Japanese consulate general, which do not include Washington surtaxes, are deposited similarly in local branch of Japanese bank in special account in the name of consul general.
3. I consider it entirely feasible for this consulate general to perform similar service for American citizens and to accept on deposit the treaty import duty and wharfage and conservancy dues of [apparent omission] after such duty and dues have been tendered to and refused by the Customs bank. The amount of such duty and dues is determined by the Customs and evidenced by a memorandum issued by the Customs as in the case of the tonnage dues. If however the Customs do not continue to function in this respect it is believed that the difficulty, which I do not regard as insuperable, could be met since the consulate general would be able to draw upon the Chamber of Commerce for experts in appraising merchandise, and warehouses could be secured in the same manner as by the Customs at present.
4. The British authorities require that British firms should deposit the amount of the Washington surtaxes in addition to the treaty import duty and wharfage and conservancy dues. The acting British consul general has informed me that they would require assurances that similar duties had been deposited with the consulates concerned by foreign (non-British) importers desiring the release of goods in British godowns. Release could not be effected upon the deposit of only the treaty duty and wharfage and conservancy dues; the Washington surtaxes must also be deposited.
5. In strictest confidence, the United States court have not yet decided the cargo [case?] referred to. Commissioner Lurton conversed with me yesterday and while he does not forecast his decision I gained the impression that he considers the court is without jurisdiction and since this plea has been raised he must consider it.
The British case was not contested by defendant warehouseman who, rather, acquiesced in the petition. The petition of the American plaintiff raised specific questions which the court must consider, while the British petition was a general one. Repeated to Legation.