693.94244/13: Telegram
The Counselor of Embassy in China (Peck) to the Secretary of State
[Received May 16—11:50 a.m.]
Department’s [telegram] 117, May 14, 5 p.m., to Peiping. I saw the Minister of Finance May 16, 5 p.m., and conveyed message. He said that recently there had been a slight improvement in the attitude of the Japanese military in that they had allowed the customs to seize some smuggling craft. He asserted that the Chinese authorities had good evidence that certain Japanese firms have been protected by the Japanese military presumably not without profit to themselves. He believed that the recent improvement was caused by the foreign protests and that if these are continued in strong terms the Japanese may permit eradication of the abuse. He said Sung Che Yuan had withdrawn his so-called coastal inspection offices in compliance with orders from him, Kung, and that he strongly suspected it had been the intention [Page 154] of Sung to start a rival smuggling enterprise. He said there are many Japanese of good principles who are ashamed of the actions of the military in connection with North China smuggling.
Repeated to Peiping.