693.002/452: Telegram

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

114. Reference my 45, January 9, 11 a.m., and 48, January 10, noon. British Chargé d’Affaires has replied to Inspector General to the effect that it is not possible to give advice beforehand on hypothetical situations, that British Government are doing their utmost by representations at Tokyo to prevent creation of a separate tariff in North China or any other action which would disrupt Customs Administration, that in their view if these efforts are unsuccessful the Inspector General must decide what measures are essential to secure integrity of the Administration in its international form and the service of foreign loans and indemnity, that they also regard deposit of revenues in a neutral bank as most important, that difficulty of the position of Inspector General is, however, recognized and he is assured that provided he keeps Embassy informed and is guided by its advice the British Government will support him to the best of their ability in any difficulties which may supervene and they will continue to impress upon Kung the necessity of taking a realistic view of the situation and will endeavor to secure ultimate acceptance by Chinese of any arrangement finally reached. French Ambassador will reply along somewhat similar lines.

[Page 633]

I learn from a confidential source that the Japanese have insisted that all foreign customs staff at Tsingtao shall be Japanese and that the Inspectorate General has acquiesced; also that the Japanese insist that the Commissioner at Chefoo shall be a Japanese and that this requirement also will probably be met.

Repeated to Hankow and Peiping.

Gauss