693.002/405: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received November 29—2:55 p.m.]
1037. Commissioner of Customs informs me that at a meeting this afternoon the Japanese Consul General requested that the Commissioner open an account in the Yokohama Specie Bank for practical deposit of the customs revenues and stated that when this is done the Japanese will enter into discussions with the foreign powers. The Commissioner is required to signify his assent within 2 days.
2. Meanwhile Japanese restrictions in which the Commissioner had acquiesced threatened and today [sic] to deny reasonable customs facilities in the area north of Soochow Creek and in Pootung. I had one American case which I mentioned yesterday to the Japanese Consul General urging that restrictions be lifted promptly, otherwise a most unfavorable reaction would result. The British Consulate General was today proposing to establish a system of declarations and guarantees on which they intended to sanction cargo movement without reference to the customs. Fortunately arrangements have been made this afternoon between the Commissioner and the Japanese under which more normal customs facilities will be permitted.
Repeated to Tokyo and Hankow.