693.002/437: Telegram

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

2. Your 699, December 31, 7 p.m.29 After giving careful consideration to the explanation and comment contained in your telegram under reference and while appreciating the motives which prompt the British to put forward their proposal, we do not feel that we can actively lend our support to that proposal. We are disinclined to participate in joint discussions in Tokyo which, although limited only to “general principles governing an arrangement” might in effect commit us to support of a specific plan which we would be expected to join in persuading the Chinese to accept. We feel that it is preferable that both you and Gauss30 continue to exert every effort, through approaches and informal discussions in Tokyo and Shanghai respectively, to convince the Japanese that in the interest of all concerned [Page 627] the integrity of the customs, both with regard to administration and revenues, should be respected.

Having in mind the possibility that control of the Chinese customs organization in areas occupied by Japanese forces may be handed over to some professedly independent régime for whose actions the Japanese authorities might disclaim responsibility, the Department is of the opinion that it is highly important that you endeavor to obtain the assurances mentioned in its 339, December 12, 3 p.m.31 We feel that you would be warranted in requesting that the Japanese authorities give those assurances before they take further steps to pursue to a conclusion the negotiations now in progress at Shanghai with Chinese Customs officials.

Repeated to Shanghai and Hankow.

Hull