693.002/467: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received 8:32 p.m.]
140. Reference my No. 132, January 24, 8 p.m.39 Inspector General of Customs last evening sent me copy of a telegram he said he had sent to the Minister of Finance reading in substance as follows:
“The Inspector General begs to suggest that with a view to encouraging trade and helping to restore the economic life of the country the Government should authorize him to reintroduce the 1931 tariff with some slight modifications. This should neutralize action of [Page 635] bogus government in north and by insuring equality of treatment for merchants of all nations would be welcomed by foreign officials and merchants alike, who have always maintained that present tariff rates are too high. Foreign powers mainly interested in equality of treatment and as reduction of rates is obviously to the advantage of their nationals they are unlikely to oppose such reduction. If Government declines to adopt Inspector General’s suggestion trade will be diverted from Shanghai and other ports to Tientsin and Tsing-tao from whence goods will penetrate by rail and by road through all occupied areas to the detriment of the Government’s prestige and expectations.”
2. At a meeting this morning with the French and British diplomatic representatives the latter told us that the foregoing message has actually not been sent as he desires first to consult London and if his Government is prepared to support the suggestion he wishes to give such support at the time the suggestion is presented. Neither he nor French Ambassador believes that the Minister of Finance will be fully prepared to approve suggestion. They both expressed the opinion that further representations should be made at Toyko in opposition to tariff changes by the Peiping régime or Japanese military.
Repeated to Tokyo, Hankow and Peiping.
- Not printed.↩