893.51/5302: Telegram
The Minister in China (Johnson) to the Secretary of State
500. Referring to the Legation’s telegram 499, June 25, 5 p.m. Following telegram has been sent to the American Minister at Shanghai:
“June 25, 6 p.m. For the Minister: Referring to the Legation’s June 25, 5 p.m.
[Page 254]- 1.
- In mail despatch June 24th American Consul [General] at
Tientsin states:
‘I may suggest that there is a radical solution of this question which the Shansi faction might apply and which they might adopt with considerable beneficial result in the way of political propaganda popularizing their position with both foreign and Chinese merchants and that is to accept the evidence of payment of Tientsin duties at Shanghai, pass the cargo without duty at Tientsin, and remit the evidence of payment of the duty at Shanghai as part of the remittance of the 5 percent duties for the service of foreign obligations, pointing out that as “such were improperly collected at Shanghai they remain in the hands of the National Government to be applied to foreign obligations.
It is obvious that such suggestion could not properly be made by me to the Shansi regime in control of the customs, and, of course, I did not make it.’
- 2.
- Gauss reports that he visited the Superintendent of Customs June 23rd and, in accordance with the wishes of the Consular Body, laid before him the question of import duties at Tientsin on cargo which had been forced to pay Tientsin duties at Shanghai. The Superintendent maintained that the duties on such import cargo are payable at Tientsin; he placed the whole responsibility on the customs at Shanghai, saying that the Tientsin customs had no option but to impose the duties.
The injustice to foreign and Chinese merchants of double duty payments was mentioned, and the disastrous effect on trade was pointed out. Mr. Ke indicated, however, that he saw no solution of the difficulty.
Gauss then informed Ke that representations had been made in the matter by the Consuls to the foreign Ministers and that it was hoped that some solution might be found in any negotiations which the Ministers might decide to have with the customs authority at Nanking. Meanwhile, it seemed to Gauss that, at least for a limited period of time, say 10 days, while merchants were adjusting themselves and arranging for a different safeguard [routing] of their cargo and until the final result of the matter might become [clear,] it would seem reasonable and just to exempt such import cargo from duty at Tientsin upon the production of proof of payment of the Tientsin duty at Shanghai. The suggestion was put forward as a personal and unofficial suggestion which might appeal to Mr. Ke as just and reasonable.
After some discussion Mr. Ke indicated that he would consider making this proposal to his superiors after consultation with his colleagues at port [Tientsin,] but he believed that he would have to amend the proposal to provide temporary exemption from duty only and require guarantee[s] for the payment of the Tientsin duty provided no adjustment could be made with reference to the duties already collected at Shanghai.
Mr. Ke stated that he would inform the Senior Consul of any decision in the matter.
Irrespective of questions of principle involved, I am of the opinion that a very considerable degree of latitude must be permitted to the consular representatives on the ground, in their efforts to adjust pressing problems and to enable the foreign trade of Tientsin to be carried on.”
- Telegram in three sections.↩