693.94244/190: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received January 28—7 a.m.]
42. The official in charge of the customs preventive service at Tientsin has informed Consul Berger69 that he estimates goods to the value of $133,000,000 local currency were smuggled into Hopei during 1936 and that customs revenue which these goods should have paid would have amounted to about $70,000,000 and that smuggled goods represent a very much increased consumption particularly of sugar in Hopei. It is felt that had the customs been able to stop smuggling and forced the payment of the very high duty on smuggled merchandise the result would have been a large reduction of importations since the consumers would not have been able to pay the resulting higher prices.
Repeated to Tokyo.
- David C. Berger, Consul at Tientsin.↩