Foreign Relations of the United States, Diplomatic Papers, 1932, The Far East, Volume IV

693.002 Manchuria/99: Telegram

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

Peiping, June 24, 1932—1 p.m.
[Received June 24—5:15 a.m.]

704. Department’s 167, June 22, 6 p.m.⁶⁷ The following is the English text of the substance of the statement of June 18th made in the name of the Minister of Finance Hsi Hsia of the Manchurian régime as published in the Manchuria Daily News:

“Manchukuo government with a view to recovering all the customs in Manchuria including the Dairen customs immediately after the establishment of the new state of Manchukuo in the spirit of the declaration of independence and the notification to some of the powers apprising them of the same hoped to dispose of this question amicably and for the succeeding 3 months Manchukuo government refrained from disturbance of the integrity of the Chinese Maritime Customs service and from touching such portion of the customs receipts as was reserved as the security for the outstanding foreign loans.

For this purpose on March 11 Manchukuo government unofficially proposed:

1. To retain the existing import tariff together with the method of collection.

2. To recover all the customs with the branches in all Manchuria including the Dairen customs.

3. To be prepared to contribute out of the custom revenue the share due to the redemption of the foreign loans for which the customs revenue is held as security keeping and employing the remainder for use of Manchukuo government.

4. To keep the foreign and native customs staff on condition that as regards the appointment and release of the Customs Commissioners and other leading officials the understanding of Manchukuo government should first be obtained beforehand.

The above proposition was advanced in hopes of concluding a compromise.

Nanking Government must have thought our amicable propositions a sign of weakness and returned no response, pursuing a policy of procrastination. In the meantime it pressed all the customhouses with their branches in Manchuria to remit thereto the whole of their revenue.

Thereupon we served Nanking Government an unspoken warning by stopping the remittance of any of the customs receipts in Manchuria excepting the Dairen customs.

Still Nanking Government refused to take the hint and since the situation both internal and external in Manchuria brooked no further delay we were advised to come to a decision and to take up preparations for completely recovering receipts of which we had stopped from being remitted to Nanking Government.

In consequence under date of June 9 with the object of giving Chinese Government an opportunity to reconsider the matter Customs Commissioner Fukumoto of Dairen was notified of the following as a reminder to press you to accept our original proposition:

Manchukuo, pending the conclusion of an agreement on the basis of your proposition dated March 22, stopped the bank of custody from remitting any of the customs receipts in Manchuria excepting the Dairen customs in order to prevent the customs receipts from slipping away. The Inspectorate General of the Chinese Maritime Customs ignoring the unshakable fact that the Manchukuo government has the right to acquire the receipts of the Dairen customs in accordance with the notification addressed by Manchukuo government to the effect that the Dairen customs receipts belong to Manchukuo and in view of the undeniable fact that all the Dairen customs receipts are being collected at the expense of the Manchukuo people caused the Dairen Customs Commissioner to remit the whole of the receipts to Nanking Government thereby assisting Nanking Government in carrying out a hostile policy toward Manchukuo.

On the part of Manchukuo out of sheer necessity of its existence it cannot possibly tolerate further continuation of any such a suicidal state of affairs.

Therefore while demanding of the Customs Commissioner at Dairen to fully consider these facts we requested the Dairen Commissioner to notify the Inspectorate General that according to how the Dairen Customs Commissioner acted on receipt of this notification Manchukuo government in spite of its previous bona fide overture might be forced to adopt such steps as to render the preservation of the Customs Administration and its international status quo impossible.

In case, however, Nanking Government and the Inspector General of the Customs ignore our reasonable overture or assume an antagonistic attitude Manchukuo government will be compelled to adopt a drastic course with all the customs in Manchuria.

In such event concerning the foreign loans for which the customs revenue is held as security Manchukuo government is prepared to contribute faithfully its share to be worked out rationally in deference to its obligations. With regard to the native and foreign officials now serving the customs in Manchuria we are prepared to engage them if so desired.

As set forth clearly above concerning the autonomy of the customs service Manchukuo government has exercised its best effort and utmost patience. If Nanking Government should still refuse to alter its attitude leading to a rupture Nanking Government should be held to answer for all.”

Johnson

67. Not printed.