693.94244/182: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received January 11—8:55 a.m.]
17. Embassy’s No. 539, November 12, 3 p.m.67 The Consul General at Tientsin has reported that according to the customs at Tientsin [Page 849] there are at present about 100,000 bags of smuggled sugar there and about 60,000 bags in Dairen awaiting transportation or en route to Tientsin; that the present price of smuggled sugar at Tientsin is about yuan $16.20 per 200 pounds, an increase of yuan $2.07 over the price of 2 months ago; that there are 2,000 cases of 200 pounds each of smuggled artificial silk yarn in Tientsin, the price of which is $220 per case as compared with $165 some months ago, the increase being attributed to higher prices in Japan; that smuggled kerosene in Tientsin is estimated at about 12,000 units with another 10,000 en route from Dairen, the price now being $6.80 to $7 per unit as compared with a low of $6.20 during early autumn; and that the total customs collections on imports into Tientsin during 1936 were gold units 6,467,002.82 less than during 1935, which loss is directly ascribable to smuggling but does not represent total loss as considerable quantities of such goods brought in through Tientsin found their way into sections which are not tributary to that port.
The report adds that, if legally imported, the silk yarn would have paid taxes and dues amounting to $250 per case and sugar at $23.93 per bag.
To Tokyo by mail.