693.002/430: Telegram

The Secretary of State to the Ambassador in Japan (Grew)

383. Tour 681, December 25, 5 p.m.29

1.
It is the Department’s understanding that the “negotiations now taking place at Shanghai” are between the Chinese customs authorities and the Japanese. The British proposal that negotiations be transferred to Tokyo naturally raises the question who or what agency is to represent the Chinese in those negotiations. The Department feels that clarification is desirable in regard to the foregoing specific question [Page 912] and with regard to the general question of the nature of the negotiations which it is proposed be “transferred” to Tokyo; that is, do the British contemplate that a definitive arrangement would be reached at Tokyo or simply that the general principles governing such an arrangement would be agreed upon, and in either case what countries would be the parties thereto?
2.
Our position in regard to the negotiations on the Chinese customs has been and is that we bring to bear our influence in Tokyo and in Shanghai to the end that, in any temporary arrangement reached, the integrity of the customs, both with regard to the administration and revenues, shall be respected. We have not felt that it was desirable for us to support any particular plan or arrangement or that we should participate directly in the negotiations at Shanghai. Our telegrams 316, 339, 366, and 37530 authorize action consistent with the position outlined above.
3.
You are authorized to inform your British colleague of our position as outlined in paragraph 2 above and to state that we are prepared to continue our endeavors in Tokyo to forestall the undermining of the Chinese Customs Administration and credit, but that we desire clarification on the questions raised in paragraph 1 above before making reply to the British inquiry with regard to a transfer of negotiations.
4.
With regard to your reference to Shanghai’s 1166, December 16, 7 p.m., paragraph 2, the Department is confident that you are making and will continue to make every effort to convince the Japanese Government of the unfortunate consequences to all concerned which would flow from a disruption of the Chinese customs service and inability of the customs to meet foreign loan and indemnity quotas.

Repeated to Shanghai and Hankow.

Hull
  1. Not printed.
  2. Dated November 24, 7 p.m.; December 12, 3 p.m.; December 21, 6 p.m.; and December 25, 2 p.m., respectively, pp. 879, 900, 908, and 909.