693.002/438: Telegram

The Consul General at Shanghai ( Gauss ) to the Secretary of State

45. Last evening Sir Frederick Maze, the Inspector General of Customs, sent me with a covering letter a strictly confidential statement which he has prepared and forwarded also to the French Ambassador and the British Chargé here. While the statement is somewhat involved in parts, the essential features I summarize below:

The Inspector General indicates that should the situation continue along present lines he would remain at his post until compelled by force majeure to leave when if possible he would remove the Inspectorate elsewhere. He believes, however, that he will soon be confronted with the situation of a provisional government claiming jurisdiction in China and will be face to face with refusing to transfer his allegiance to that regime in which case he would doubtless be succeeded by a Japanese. However, should the powers desire for the purpose of preserving the integrity of the service that he remain temporarily, he would do so and extend limited recognition to the provisional regime pending a final settlement of Sino-Japanese affairs. In this case the powers should attempt to persuade the Chinese Government to offer no objection to that course and the powers would presumably make representations however to the de facto régime in regard to their treaty rights and controversial matters such as preferential duty treatment. If the powers were not prepared to take the outlined action the Inspector General might be forced to resign. If the powers wish the inspectorate and the various and great prerogatives so closely connected [Page 628] with the customs to be preserved, they should be prepared to assume the attitude of 1911 when the Inspector General was treated not only as a servant of the Chinese Government but as a trustee of foreign interests.

The Inspector General foresees the early establishment of the provisional régime in Shanghai and considers that the powers should intimate to him the course of action he should follow. He expressed the hope that I would “continue to exercise your valuable influence in favor of the integrity of the service and the so-called inspectorate system” I shall not reply unless otherwise instructed.32 I feel that the present Inspector General is inclined too much to seek the instructions and support of the three interested powers with reference both to the Chinese Government and the Japanese. It is probable however, that he will have to face the situation outlined under which a provisional Chinese government set up by the Japanese will demand his adherence.

Repeated to Hankow and Peiping.

Gauss
  1. Notation by Walter A. Adams, of the Division of Far Eastern Affairs: “Decided after discussion not to instruct Gauss to reply to Inspector.”