693.002 Manchuria/121: Telegram

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

739. Your 173, June 24, 2 p.m.; and supplementing my 720, June 27, 2 p.m. My British colleague informs me that he had been instructed not to cooperate in joint action with Japanese but to continue his personal and unofficial efforts to persuade Chinese to do nothing that would destroy integrity of Customs Administration in Manchuria or at Dairen. Ingram suggested unofficially to Chinese that as total collections [Page 120] Dairen would amount to Manchurian quota for service of foreign loans an arrangement might be reached with Japanese whereby Dairen collections be remitted to China leaving collections at other customhouses in Manchuria to be taken by Manchukuo, thus giving Manchukuo what it wishes and leaving integrity of Customs undisturbed. Ingram states that Soong indicated willingness to proceed along these lines but he feels it is too late in view of the dismissal of Customs Commissioner at Dairen. Ingram’s information is that Fukumoto, Commissioner at Dairen, in the name of Manchukuo is setting up office at Wharf [Wafangtien?].

My French colleague was instructed not to cooperate in pressure at Nanking. He has taken unofficial steps to urge Chinese at Nanking to preserve integrity of Customs Administration. My Italian colleague has been instructed not to cooperate in pressure at Nanking. He also has made unofficial representations to Chinese authorities in favor of maintenance of integrity of customs.

Johnson