693.002 Manchuria/124: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

[Paraphrase]

177. Telegram from the Department, No. 136, June 28, 5 p.m.9 This afternoon I carried out your instructions. Arita was informed that the American Government had heard with concern a report that the Chinese Maritime Customs at Dairen had been taken over by the present régime in Manchuria and that I had been instructed to inquire whether this report was true. It is felt, I told him, that the already existing problems of a most difficult nature which my Government most earnestly desires to see solved would be materially complicated by such action and that, as well as a threat to the security for certain fiscal obligations of the Chinese Government, the reported step would appear to be a violation of the integrity of the Chinese Maritime Customs service in which admittedly the American Government is interested. Therefore I was instructed to express the earnest hope that any action which may interfere with the integrity of the Chinese Maritime Customs service or which may run counter to treaty obligations will not be tolerated by the Japanese Government.

It was asserted by Arita that the revenues of the Manchurian customs were needed by the Manchukuo régime just as they had been needed and taken by Chang Tso-lin, but that the Manchukuo authorities through the good offices of the Japanese and British representations in Peiping were negotiating with the Nanking Government for a compromise whereby sufficient funds would be remitted from Dairen to Nanking to cover foreign obligations, while the surplus from [Page 93] Dairen as well as all other customs revenues in Manchuria would be taken by Manchukuo. An interruption in these negotiations has occurred because of the dismissal of Fukumoto for refusal to remit to Shanghai the Dairen revenues, whereupon out of sympathy the entire Japanese staff in Dairen resigned. It was stated by Arita that the Japanese Foreign Office did not have any information that the flag of Manchukuo had been hoisted on the customs building at Dairen. Rather, the work was being carried on de facto by Fukumoto and the Japanese staff and 800,000 taels had just been remitted to Shanghai. Arita said interference with the payment of the foreign obligations would not be countenanced by the Japanese Government. Meanwhile, with the initial condition that Fukumoto and his staff be restored to office, Arita asserted that the Japanese representative in Peiping, in connection with his British colleague, is using his good offices to mediate between Nanking and Manchukuo. He said that except for the customs in Dairen the Japanese Government has nothing to do with the customs in Manchuria.

A copy of this telegram has been sent to Peiping.

Grew
  1. Not printed.