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

693.002/382: Telegram

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

Washington, October 12, 1937—4 p.m.

259. Reference Nanking’s 788, October 9, 1 p.m., in regard to customs revenues, which it is understood was repeated to you by Shanghai.

On October 9 the British Embassy handed the Department a statement of the substance of a telegram from the British Government to the British Embassy at Tokyo which reads as follows:

• “1. His Majesty’s Government regard proposed solution as satisfactory subject to following two points: (a) Japanese Consul-General at Tientsin to give written assurances balance to be deposited with Yokohama Specie Bank in Tientsin should not be touched, (b) Funds deposited with Hong Kong and Shanghai Bank to be in name of Inspector-General of Customs.
• 2. If Chinese Government are prepared to accept arrangement subject to (b) above you should strongly urge Japanese Government to agree. Meanwhile please endeavour to secure that military are restrained from proceeding to seize revenues at Tientsin.”

Please consult with your British colleague and, in your discretion, make an appropriate approach to the Japanese Government. In so doing the Department feels that you should take occasion to emphasize that this Government is interested primarily in the preservation of the integrity of the Chinese customs (Department’s 214, September 18, 3 p.m., and your 406, September 24, 4 p.m.).

Hull