693.002/403: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received November 28—7 a.m.]
1026. At a meeting this morning of the same persons named in my number 1016, November 24, 7 [4] p.m., the Commissioner of Customs reported that at his second interview with the Japanese Consul General the latter was disposed to regard favorably the proposal to bring to the posts a number of Japanese members of the customs service from other ports but stated that final decision would rest with the higher Japanese authorities. The Commissioner also reported that the Japanese Consul General stated that the Japanese Government is adamant that the customs revenue must be deposited with the Yokohama Specie Bank and gave the Commissioner to understand that the customs classification loan and quotas would have to be negotiated through diplomatic channels. I am advised that at the instance of the French Ambassador and the British Financial Adviser the French and British Consuls General are this afternoon calling separately on the Japanese Consul General and leaving aide-mémoire to the following effect:
It is understood that pressure has been brought to bear on the Shanghai Commissioner of Customs to deposit customs revenues in the Yokohama Specie Bank. As the Japanese Consul General is doubtless aware, practically the entire customs collection in China is pledged for the service of foreign obligations. In these circumstances it is very desirable that no change be made in the arrangements for the collection and disbursement of customs revenues in the posts until some agreement is reached of [by?] those powers interested in the obligations secured on the revenue. Negotiations on this subject are already taking place in Tokyo. Until the outcome of these negotiations is known the British Consul General would strongly deprecate any precipitate action to alter the existing arrangements for dealing with the customs revenue in this port.
- 3.
- [sic] I, however, did not feel that I could take identic action but that I would be seeing the Japanese Consul General and would express to him informally and orally the hope that no precipitate action will be taken here in the matter of the customs. I expect to see the Japanese Consul General tomorrow morning.
- 4.
- Meanwhile with reference to paragraph 2 of Tokyo’s number 567, November 26, 6 p.m., let me say that there are no discussions [Page 886] going on here between the Japanese and the consular representatives concerning the customs except as reported in the last sentence of my number 1008 of November 23, 8 p.m.9 Approaches on the subject are usually dismissed with the statement that the matter is being studied.
Repeated to Tokyo.