Foreign Relations of the United States Diplomatic Papers, 1937, The Far East, Volume III

693.002/374: Telegram

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

Tokyo, September 24, 1937—4 p.m.
[Received September 24—6:30 a.m.]

406. Department’s 214, September 18, 3 p.m.—Chinese Customs and Salt Administrations.

1. My British colleague who has sent to me copies of one note and two aide-mémoires on the above-mentioned subject left by the British Embassy at the Foreign Office stated that action by us along the lines suggested by the Department would be very helpful. He explained that with special reference to the Maritime Customs at Tientsin the Japanese proposed that a certain proportion of the customs revenues be set aside for servicing loans secured by customs revenues and that the balance be placed on deposit in the Yokohama Specie Bank until settlement of the present conflict and that the Chinese had agreed to the proposal but on condition that the repository be a neutral bank. That condition is not acceptable, Craigie⁹¹ stated, to the Japanese.

2. This morning Dooman⁹² made orally to Yoshizawa⁹³ a statement along the lines of third paragraph of Department’s telegram under reference. Yoshizawa replied briefly to the effect that the Japanese Government is also solicitous that the integrity of the Customs and Salt Administrations shall be maintained as evidenced by the fact that the director of the customs at Tientsin still is a person appointed by the Chinese Government. He added that a supplementary reply would be made later.

Repeated to Shanghai for relay to Nanking.

Grew

91. Sir Robert L. Craigie, British Ambassador in Japan.
92. Eugene H. Dooman, Counselor of Embassy in Japan.
93. Director of the American Bureau of the Japanese Foreign Office.