693.002 Manchuria/130: Telegram
The Minister in China (Johnson) to the Secretary of State
[Received June 30—9:10 a.m.]
748. My 680, June 21, 8 a.m.; Department’s 173, June 24, 2 p.m.; my 720, June 27, 2 p.m.; and my 739, June 28, midnight. I communicated to my Japanese colleague Department’s instructions in this matter. He now informs me that his Government has instructed him again to approach British, French and ourselves with the request that we urge the Chinese to restore the status quo ante at Dairen, that is, withdraw dislodging of Fukumoto. He states that it is the hope of the Japanese Government that Chinese can be persuaded to do this and at the same time tacitly consent to a plan whereby surplus collections at Dairen and other Chinese customhouses in Manchuria will be turned over for the use of Manchukuo, leaving balance to be applied to service of the foreign loans and cost of administration. By this means they hope to limit question to matter of disposal of the surplus and leave Customs Administration and its integrity undisturbed.
Japanese Government express fear that unless Chinese Government is prepared to consent tacitly to such an arrangement Manchukuo authorities will take matters into their own hands and Chinese Government will lose not only surplus but control over Customs Administration and integrity of customs will be destroyed.
I have informed my Japanese colleague that as my instructions now stand I am not in a position to cooperate in urging Chinese Government to accept such an arrangement with Manchukuo. At his request, [Page 122] however, I am transmitting the above in order that the Department may give question consideration and instruct me further in the matter.