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The Chinese Embassy to the Department of State

The spokesman of the Ministry of Finance of the Chinese Government issued on January 24, 1938, the following statement in regard to the reported revision of tariff in North China:

“The announcement made by the Peiping puppet regime that modified tariff will be enforced in North China beginning from tomorrow is the most serious matter which, it is hoped, will receive the immediate attention of the world powers whose interests, besides China’s, are directly menaced. For many years, the Customs Administration has been responsible for the payment of China’s foreign obligations secured on the customs revenue. The Japanese invasion of Manchuria in 1931 has already caused serious impairment of the administrative integrity of the Chinese customs service. Notwithstanding the promise Japan made to pay from the revenue collected in Manchuria certain quotas for the payment of foreign obligations, she has not carried it out. Japan is now trying to disrupt the Chinese customs service entirely by instigating the Peiping puppet regime to modify the tariff. This move would not only destroy the integrity of the Chinese national fiscal administration, but also seriously jeopardize the interests of the foreign governments and bond-holders of all nationalities. The tariff changes made by the Peiping puppets are reported to involve considerable reductions, but obviously they are made in favor of the Japanese commodities particularly. Once the action of making such tariff changes in China by illegal organizations is not challenged, there will be little doubt that the Japanese have in their hands the powerful weapon to keep the commodities from other countries out of that part of China which is under the Japanese influence. The Ministry of Finance has wired instructions to the Customs Inspectorate General not to recognize the illegal change of tariff in North China.”