Office of the Historian

693.94244/233: Telegram

The Ambassador in China (Johnson) to the Secretary of State

Peiping, June 7, 1937—5 p.m.
[Received June 7—11:15 a.m.]

160. My telegram No. 133, May 11, 3 p.m. Tientsin’s despatch No. 486, June 4, 193776 states that: according to information compiled by foreign oil firms in Tientsin during the month of May, 31,542 cases of kerosene and 5,860 cases of gasoline were landed in Hopei by smugglers.

This oil was of the following brands: 75 cases of kerosene, Standard Vacuum Oil Company brands; 4,150 Asiatic Petroleum Company brands; 500 cases kerosene and 750 cases of gasoline Texas Company brands; 26,817 cases of kerosene and 5,110 cases of gasoline Japanese brands.

The Commissioner of Customs in Tientsin states that:

(a)
He has practically completed an agreement with the Tientsin Chinese Chamber of Commerce for the registration of smuggled goods held by Tientsin Chinese firms. The Japanese authorities have informed him that they do not object to such registration by Chinese firms of smuggled goods stored in the Japanese concession. This agreement was evidently effective in the British, French and Italian concessions.
(b)
Considerable quantities of smuggled goods which were escorted past Shao Hsi Men customs barriers on the outskirts of Tientsin in motor trucks by Japanese subjects during May were nearly all delivered to canal boats. The customs have subsequently seized these goods and thus frustrated the smugglers’ maneuvers.
(c)
The preventive service is now seizing at least 60% of all smuggled goods sent out of Tientsin into the interior with the result that the smuggling trade is operating at a considerable loss.
(d)
The Peining Railway authorities continue to refuse to cooperate with the customs in seizing smuggled goods at the Tientsin East [Page 856] Station. However, the customs now have access to the railway manifests and other shipping documents, therefore, whenever smuggled goods arrive a written request that these goods be held at the disposal of the customs is presented to the railway authorities by the customs.
(e)
Mr. Chen Uhueh Sheng, the managing director of the railway who is also a member of the Hopei-Chahar Political Council, caused that council to instruct the Commissioner to remove the customs representatives at the East Station. The Commissioner, who was first approached, refused to receive the instruction. The Superintendent of Customs was then approached and he refused to transmit it to the Commissioner, both these officials insisting that the matter be taken up at Nanking.
(f)
He has no intention of opposing the smugglers by force but will carefully watch them, report and protest all their activities particularly those of the managing director of the above-mentioned railway.

By mail to Tokyo.

Johnson
  1. Not printed.↩