693.002/507: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received February 12—5:16 p.m.]
252. Recent assertions by the Japanese authorities here that the failure of the Tientsin customs to remit funds for foreign loan and indemnity service was due to a decision made by the Customs Commissioner at Tientsin led to inquiry as a result of which the British Chargé d’Affaires has obtained and sent to me and to the French Ambassador in strict confidence copy of a letter dated October 22 addressed by the Commissioner of Customs at Tientsin to the Japanese Consul General there in which he states: [Page 655]
Throughout the duration of the present hostilities between the Japanese Empire and China and until the questions arising out of these hostilities are settled these specified collections will continue to be deposited with the Yokohama Specie Bank and it is understood that withdrawals therefrom shall consist of moneys for regular and accepted current local expenses. In regard to such of these moneys as are marked for loan obligation purposes, their disposal is left to my discretion, but it is not my intention to make any withdrawals in this connection pending the settlement arising out of the present hostilities and therefore any question regarding them does not arise.”
Repeated to Tokyo and Hankow.