693.002/421: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received December 16—12:18 p.m.]
1166. I met by invitation this morning with the French Ambassador, British Chargé d’Affaires, and the British Financial Adviser to discuss the customs situation. The British are of the opinion based on their conversations and mine with the Japanese Consul General that it is not possible to accomplish anything by negotiations here and that such negotiations should be transferred to Tokyo. The French Ambassador is in accord but comments that he feels that with the setting up of a provisional government for China at Peiping we may soon expect that government with Japanese support to claim jurisdiction over the customs not only in North China but at Shanghai and that the situation with reference to loan and indemnity quotas, et cetera, will become similar to that in Manchuria. He directed attention to a Reuter message from Tokyo dated December 15th saying that the Provisional Government of the Republic of China established in Peiping is reported to be planning to open negotiations shortly with the Commissioner of Customs at Tientsin with a view to taking over all customs stations in North China. He is of the opinion which I am inclined to share that the disposition of the Japanese to press the Commissioner of Customs at Shanghai lately may be due to some change of policy under which the new Chinese Government established under Japanese influence will appear in the picture.
2. I am of the opinion that if action is to be taken to protect foreign loan and indemnity interests in the Chinese Customs it should be taken without delay at Tokyo.
Repeated to Tokyo and Hankow.