693.002/379: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received 7:50 p.m.]
766. My 726, September 27, 3 p.m. British Chargé d’Affaires yesterday acting under instructions of Great Britain [the British?] Government left with Minister for [Foreign] Affairs following aide-mémoire:
“Mr. Howe has the honor to refer to the oral representations which he made on the 18th September last regarding the proposals for the disposition of the customs revenue at Tientsin made by the Japanese [Page 871] military authorities there, refusal to accept which would entail the taking over of the Customs Administration by those authorities.
Mr. Howe understands that the Japanese military authorities at Tientsin are insistent that the customs revenue be deposited in the Yokohama Specie Bank and are not prepared to accept any alternative. His Majesty’s Consul General at Tientsin, who has been following this question closely, points out that if the funds are so deposited the Commissioner of Customs will retain full control over them and also that no remittances will be possible to the Chinese Government until a final settlement of the present difficulties has been reached. On the other hand it is stated that the Japanese authorities agree to remittances to the Inspector General of Customs for payment of the foreign loan quotas—and to withdrawals for all necessary local current expenditures.”
Last night at dinner I referred informally to this matter in conversation with Minister for Foreign Affairs stating that our sole interest was to see that whatever arrangement was arrived at would protect the administration of the customs. Dr. Wang stated that difficulty lay in fact that Japanese were insisting that customs revenues be deposited in Japanese bank whereas Chinese insisted that deposits be placed in bank of third power. He asked me whether I thought Japanese would make similar demands in regard to customs at other places, for instance Shanghai. I said that I thought that they would and that the proposal originating with the bankers at Shanghai had been put forward with the thought of forestalling such a situation and protecting the Customs Administration.
I understand that French Embassy is making representations similar to those made by British Chargé d’Affaires.
Sent to the Department. Repeated to Shanghai, Peiping, [by?] mail to Tokyo.