693.002/422: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received December 16—5:30 p.m.]
1167. British Chargé d’Affaires has handed me copy of a confidential memorandum sent to him by the Inspector General of Customs who points out that his position is becoming increasingly difficult of late by reason of the fact that he is still in direct communication with the Chinese Minister of Finance to whom he would have to refer for [Page 905] approval or disapproval the attitude which the interested powers may consider it desirable for him to assume in order to endeavor to conserve the integrity of the customs in Shanghai and elsewhere which the Chinese Government themselves are no longer in a position to protect. He envisages a situation in which the interested powers may decide that the Shanghai Commissioner should adopt a certain line of procedure in order to cope with such circumstances as may arise which the Inspector General as the Commissioner’s superior may find himself unable to endorse because the Minister of Finance may conceivably have issued instructions on the subject of a reactionary nature. In order to provide against such an unsatisfactory situation he believes the representatives of the interested powers in touch with the Minister of Finance might consider it desirable to make representations to him to the effect that the interested powers are endeavoring to the best of their ability to safeguard the customs situation and desire to dissuade the Chinese Government from issuing instructions which might possibly conflict with the policy which the interested powers may deem it desirable to adopt in the best interests of China herself.
- 2.
- British Chargé d’Affaires is telegraphing his Embassy representative at Hankow to the effect that the British Government feel it desirable that the Chinese Government should be persuaded at least tacitly to acquiesce in any settlement of the customs question which is acceptable to the three principal creditor powers, that he is following closely the course of negotiations between the Japanese and the customs, that every possible diplomatic support is being given to the customs representative to secure the best temporary arrangement possible, that the Embassy representative should make clear the foregoing position both to the Minister for Foreign Affairs and the Minister of Finance and make every effort to secure that the Inspector General is given discretion to conclude a settlement applicable to Shanghai but possibly also to other ports under Japanese domination which seems to the three powers concerned to be the best solution in the present difficult circumstances emphasizing that this arrangement seems to be the only one which offers a reasonable chance of checking excessive Japanese demands. The British Embassy representative is being instructed that he should if possible act in conjunction with his American and French colleagues.
- 3.
- I told the British Chargé d’Affaires that I would inform the American Ambassador of the foregoing.
Sent to Department. Repeated to Hankow.