893.51/5322: Telegram

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

554. Legation’s 512, June 28, 6 [2] p.m. Following from mail despatch July 1st from Consul General at Tientsin:

“For the Shansi-controlled customs regime at Tientsin it must be stated that there has been a disposition to respect all treaty arrangements in respect to dues and duties. Tonnage dues certificates issued at all ports under National Government control have been accepted without question, and, while there was some question as to duty-free treatment of exemption certificate cargo (imported into [Page 267] Shanghai and other ports and later distributed to Tientsin under exemption or duty-free certificates), this cargo is being passed without levy of duties.

It is reported that proposals for a compromise settlement of the customs situation at Tientsin are now being considered by the National Government which heretofore has declined to accept any suggestion which contemplated cessation of the remittance of revenues to Shanghai to its control. The proposals are stated to contemplate the assignment of a commissioner or acting commissioner of customs acceptable to both the National Government and the Northern allied armies and provision for the deposit of surplus revenues for the time being in Tientsin banks (probably foreign banks) under appropriate custody to ensure that the funds will not be diverted to military purposes.”

For the Minister:
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