893.51/5250: Telegram
The Minister in China ( Johnson ) to the Secretary of State
[Received May 8—6:45 a.m.]
315. Legation’s 307, May 5, 6 [5?] p.m. In reply to a request for an interview by the editor of the Leader, L. N. Chu,41 representative of Yen in Peiping, made a statement which in part reads as follows:
“The only portion of the revenue which would be impounded was the moiety which had nothing to do with foreign loans and indemnities or with Chinese domestic loans the service of which had been guaranteed by the Inspector General of Customs.
That is to say it was the ‘new money’ which was at stake, namely, that extra amount coming in as a result of the enforcement of the National tariff—money which T. V. Soong found very useful to juggle with to pay for troops and explosives. If he had secured his own loans on it that was his lookout.
Marshal Yen Hsi-shan was absolutely determined to put a stop to this, and drastic action would be taken within a reasonable delay [sic] if fresh instructions were not placed in the hands of the Tientsin Commissioner of Customs from his immediate chief. Steps had been taken to convey a last warning only a few hours ago; if that warning failed there would be nothing for it but to settle the matter by other means.
He was confident that none of the Legations proposed to intervene in any way—the matter was admittedly beyond their competence and strictly concerned only China. Should however there be any foreign interference he would raise his voice and protest against any attempt to tamper with China’s customs autonomy.
Dr. Chu drew attention to a telegram from a news agency declaring that in Shanghai the British-American Tobacco Company had taken up $20,000,000 of new tobacco tax bonds. He did not personally believe the telegram. But it would be well if the British company took steps authoritatively to deny it. The British-American Tobacco Company had great interests in North China and this report of a loan had attracted great attention. Any support given at this moment to Nanking by foreign organizations would certainly react most harmfully on North China and could not be passed by. Therefore he hoped there would be immediate denial.”
- Presumably Chu Ho-hsiang, also known as Tchou Ngao-hsiang.↩