Papers relating to the foreign relations of the United States, 1930, Volume II

893.51/5308: Telegram

The Minister in China (Johnson) to the Secretary of State

Peiping, June 28, 1930—2 p.m.
[Received 6:22 p.m.]

512. Department’s 212, June 26, 4 p.m. Following from the Minister at Shanghai:

“June 27, 5 p.m. Department’s 207, June 23, 6 p.m., and other telegrams from the Legation regarding Tientsin customs situation.

1. Question of protesting against collection of national duties at Shanghai upon cargo landed at Shanghai and destined for Tientsin I felt to be beside the point, as custom has long existed of reexporting to Tientsin and other Chinese ports ex-warehouse Shanghai, cargo upon which duty has been paid under exemption certificate. This practice will be followed under present conditions, and question will arise as to whether Tientsin will recognize local exemption certificates issued at Shanghai and vice versa.

2. Question of right of Nationalist Government to close port of Tientsin temporarily or permanently and designate other port for purposes of collection of import duties is one upon which I am now [not] prepared to pass.

I suggest that it be placed before the Department for decision. Article 5 [25] of the political [British] treaty of 1858 does not in my opinion necessarily require that duties be paid at port of destination. Otherwise, it would have been difficult to maintain exemption certificate performed [procedure?].

3. Japanese Chargé Shigemitsu told me June 26th that he and British Minister had been cooperating with a view to bringing about some compromise on this question between the Nationalist Government and the Shansi faction. He said that he believed there was some prospect of a settlement on the basis of the continued remission by Tientsin to Nanking of something equivalent to old 5 percent tariff representing amount of Tientsin collections earmarked for service of foreign loans. He said that Nanking would also insist that Shansi faction recognize that national domestic loans be treated on a parity with foreign loans; that, these points being agreed to, there would remain a sum of something over Taels 400,000 collected at Tientsin which would be handed over to the Shansi faction. Shigemitsu said that this proposal was acceptable to Nanking and that now they only awaited word of its acceptance by the Shansi faction which he expected any time.

4. Shigemitsu asked me whether I had received any instructions and I said that I had not.

5. From the above it will be apparent to the Legation and to the Department that British and Japanese are working for a compromise which would leave the Shansi faction in actual charge of collections at Tientsin.

6. Personally, I see no good purpose of making a protest on basis of Washington Conference statement of Chinese delegate, as Nationalist Government would rightly contend that they have no desire to endanger integrity of customs service. Shansi faction might well reply that it is not concerned in the matter.

7. Question of manner of customs administration seems to me to be one upon which we have no basis of right to intervene. I am of the opinion that [as far] as we are concerned and as far as Chinese legal rights are concerned, the Chinese Government could abolish the present Customs Administration in favor of some other machinery. This in fact has been done as machinery now operating is no longer the independent administration that it was under Hart and Aglen.⁷⁹ The present administration is merely an adjunct to the office of the Minister of Finance, the Inspector General being his employee.”

For the Minister:

Perkins

79. Sir Robert Hart and Sir Francis Aglen, former Inspectors General.