893.51/5355

The Consul General at Tientsin (Gauss) to the Minister in China (Johnson)72

Sir: In my despatch of yesterday’s date73 concerning the Tientsin Customs, I mentioned the effect of the Customs situation on the Hai Ho Conservancy Commission.

I have now the honor to inform you that at a Consular Body meeting held this morning it was agreed that the Secretary of the Conservancy Commission should be told to direct the river dues staff to return to duty at the Custom House. This staff is not a part of the Customs; it is appointed by the Conservancy, and collects river dues, international bridge tax, and the special river dues for the palliative scheme. It functions in the Custom House, calculating the dues and taxes payable for conservancy purposes. These payments due are noted on the Customs documents and the amounts are paid at the Customs bank for account of the Conservancy.

As Chairman of the Conservancy Commission, I directed the Secretary to see Mr. Simpson and explain to him the particular duties and status of the river dues staff, so that there may be no misunderstanding and no attempt to assign them to duties other than those for which they are employed and paid by the Conservancy Commission.

On the question of the status of Mr. Simpson as a member of the Board of the Conservancy, after much discussion it was finally agreed that we cannot do otherwise than accept the existing situation; that is, Mr. Simpson is regarded as de facto Commissioner of Customs and under these circumstances becomes a de facto member of the Board. The Secretary has been advised to draw his checks for funds in the usual way and take them to Mr. Simpson for signature as a member of the Board. If the Banks in which the funds are deposited decline to recognize Mr. Simpson’s signature, the Senior Consul was authorized by his Colleagues to inform the Banks that in their opinion as Mr. Simpson is de facto Commissioner of Customs at the port he becomes de facto a member of the Board of the Conservancy. Inasmuch as the Secretary’s signature appears on the checks and the funds are administered by the Secretary, there is no reason to believe that the Banks will decline to deliver the funds.

I have [etc.]

C. E. Gauss
  1. Copy transmitted to the Department without covering despatch; received August 1, 1930.
  2. Despatch not printed; see telegram No. 500, June 25, 6 p.m., from the Minister in China, supra.