693.002/436: Telegram

The Consul General at Shanghai (Gauss) to the Secretary of State

1258. Inspector General of Customs informs me that Japanese Consul General called on him yesterday and stated that the Japanese propose to control Shanghai customs, that by control he means having supervisors in the customs house and that the present arrangement under which there are numerous customs employees of Japanese [Page 913] nationality is not satisfactory control. Inspector General pointed out foreign interests in the customs and expressed the view that before any drastic change is made in the administration of the Shanghai Customs the views of the interested foreign powers should be ascertained. Consul General also brought up matter of deposit of revenue in the Yokohama Specie Bank. Inspector General stated in reply that the arrangement at Tientsin had proven unsatisfactory, that the Minister of Finance opposed such a plan, and that he, the Inspector General, was not prepared to say yes or no to the proposition, and that the views of the interested powers on this question should also be sought.

Repeated to Tokyo and Hankow.

Gauss