893.51 Salt Funds/170: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received March 12—7 a.m.]
154. Shanghai’s 371, March 9, 4 p.m. It is my opinion that in dealing with the situation which faces the Salt Administration we should remain as aloof in the matter of offering advice to the Chinese as we have been in regard to the Customs Administration. Chinese Government is unable to do anything for administration of this tax in areas occupied by the Japanese. Foreign governments are in no position to substitute themselves individually or in combination for Chinese control. Japanese are prepared and in fact desire to substitute Japanese control for Chinese control of these taxes. Under the circumstances it seems to me that we must in the end hold Japanese responsible for any claim which our nationals have upon the revenues in question.
Repeated to Peiping, Shanghai. Shanghai please repeat to Tokyo.