893.51/5260: Telegram
The Minister in China ( Johnson ) to the Secretary of State
[Received May 3—6:40 a.m.]
302. Legation’s 299, May 2, 5 p.m. Following from Reuter, Shanghai, May schedule [2?]:
“Mr. T. V. Soong, Nanking Minister of Finance, has issued a statement saying that the attempt of the Northern[ers] to seize the additional customs revenue at Tientsin constitutes a grave threat to the integrity of the Maritime Customs and seriously jeopardizes the interest of all creditors of the Government.
The statement points out that the entire customs revenues are pledged to foreign indemnities and loans and that the old 5 percent duty is insufficient to take care of the obligation.
It says that between February and April of this year Taels 5,800,000 had to be withdrawn from the reserve for the purchase [purpose?] of meeting foreign loan obligations and that a further shortage of Taels 3,800,000 one [from?] the 5 percent revenue for foreign loans is anticipated by the end of June.
It adds that if the seizure of the ‘additional’ duties at Tientsin is permitted, a dangerous precedent would be established which would shatter China’s credit at home and abroad. Therefore the manifest duty of the Government is to do its utmost to prevent the contemplated action of the Northerners.”