693.002/453: Telegram

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

113. I learn that a representative of the Japanese Consul General today informed the Commissioner of Customs that the customs arrangements for Shanghai are to be as follows:

Deposit of revenues in Yokohama Specie Bank in the name of the Commissioner, authorization for payment of cost of collection including consideration of a quota for cost of Inspectorate General, and authorization to meet Shanghai quota of foreign loan and indemnity payments such quota to be established in consultation with the customs. Balance of revenue to remain in the account in anticipation of later organization of a regional government in this area. Commissioner replied that he must consult the Inspector General. Developments will be reported.

Sent to the Department, repeated to Tokyo, Hankow and Peiping.

Gauss