693.002 Manchuria/118: Telegram

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

727. 1. Following from Reuter, Shanghai, June 26th:

Sir Frederick Maze, Inspector General of Customs, issued a reply this afternoon with reference to the reported declaration of the Japanese Government that the recent dismissal of Mr. Fukumoto, Commissioner of Customs at Dairen, was contrary to article 3 of the 1907 Dairen agreement.

Sir Frederick Maze’s reply states that the action of the customs authorities in dismissing Mr. Fukumoto did not contravene the agreement. It did not necessitate consultation with the Kwantung Government. He quotes the three articles of the agreement, the first of which says that the Inspector General will come to an understanding with the Japanese Legation in Peiping in the case of appointing a new commissioner. The second says that staff members of the maritime [Page 118] customs there must be Japanese, with the exception of a suddenly occurring vacancy when in the temporary requirements of the service other nationalities may provisionally be sent to Dairen. The third article says that the Inspector General will inform the Governor General of the leased territory beforehand about the change.

The Inspector General points out that prior to effecting the provisions of article 3 it is first necessary to execute the provisions of article 1.

He says that Mr. Fukumoto’s successor has been duly nominated and when the Japanese Legation authorities concur with the nomination the Governor General of the leased territory will be informed.

He concludes by saying that Mr. Fukumoto’s insubordination is without parallel in the annals of the customs service.”

2. Following from Reuter, Changchun, June 26th:

“In spite of the ‘stringent attitude’ of the Nanking Government regarding the Dairen customs it is reported today from Japanese sources that the policy of Manchukuo remains unchanged and the chief of the Bureau of Taxation in the Finance Ministry, Mr. Matsuzo Genda, hurriedly left for Dairen today. In this connection it is reported that the Manchukuo government is adamant that in the event of failure to take over the Dairen customs it is prepared to establish a Manchukuo customs station outside on the border of the Kwantung leased territory as a final measure. The place for such a station has already been selected, namely, Wafangtien, and the necessary preparations have been completed to construct a new customs building for the sum of 20,000 yen.”

Johnson