693.002 Manchuria/67: Telegram

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

626. Your 140, June 4, noon. Hanson telegraphs June 5, 3 p.m., that a member of the new government has stated privately that it is the intention of the government to appoint an inspector general of customs for Manchuria. My British colleague has similar information. When I inquired on June 1st of Hanson at Harbin he stated that in a conversation with Ohashi on June 1st the latter said that Changchun government was badly in need of funds and would have to take over the customs but did not say how soon.

Now that League Commission has completed its work in Manchuria I am told that all former Japanese advisers have resigned and are being reemployed as “employees” of the Manchukuo, the term “adviser” being considered to indicate too close a relationship between Japan and Manchukuo.

McCoy informs me that throughout stay of Commission in Manchuria every effort was made by Japanese to convey impression that Manchukuo was and is an independent government.

Both McCoy and Blakeslee have recounted to me a number of incidents evidently intended to convey this idea.

This fact must be taken into consideration in any action contemplated in connection with question in Manchuria on the subject of customs, post or salt.

Following facts as regards operation of Chinese customs in Manchuria are communicated to me from reliable source: as regards Antung, Newchwang and Harbin customs the authorities of Manchukuo have instructed the Bank of China not to remit revenue surplus to Shanghai although respective commissioners are authorized to retain [Page 67] amount of cost of collection. With this exception inspector general’s administrative authority remains unimpaired as regards Antung and Newehwang, Bank of China is reported to hold revenue concerned in a special suspense account it being understood that this fund will not be disposed of until the Manchurian question is definitely settled. In regard to Harbin, revenue is similarly retained in a special account in the Three Eastern Provinces Bank. Aigun and Lungchingtsun are remitting normally when they have revenue to remit. No change in procedure has been made as Dairen is under a special agreement.

Johnson