693.002/667: Telegram
The Consul General at Shanghai (Lockhart) to the Secretary of State
[Received May 27—7:48 a.m.]
723. 1. The Inspector General of Customs on May 24 wrote me to state that the Japanese Embassy has approached him and the Japanese military authorities are prepared to permit the resumption of normal customs procedure on the wharves in the Hongkew, Yangtzepoo and Pootung areas under certain conditions. A memorandum [Page 718] submitted to the Inspector General on May 21 by the Japanese Consul General provides for the cooperation of the Japanese military and naval authorities in ensuring the payments of duty on non-military Japanese imports and in preventing smuggling under the following general conditions:
- (1)
- Only imports customs officers to be despatched to Japanese owned wharves and Chinese wharves occupied by Japanese troops.
- (2)
- At least one Japanese customs officer to be placed on other wharves to supervise foreign customs officers to prevent smuggling of arms and munitions.
- (3)
- Measures to be taken at once to implement the recent Anglo-Japanese arrangement. To implement the above the Japanese Consul General suggests the prompt permanent employment of at least 85 examiners and 40 tidewaiters of Japanese nationality; also to facilitate the smooth working of the recent Anglo-Japanese arrangement, the employment of a Japanese assistant secretary or revenue accountant.
2. In his letter of transmittal to me the Inspector General states that he believes it is generally admitted that in the interests of international trade it is essential to restore normal trade conditions here and to endeavor to place the control of trade and shipping on an equal basis and he therefore suggests that the Japanese proposals merit favorable consideration.
3. Enclosure 6 to the Consulate General’s despatch 1236 of February 24 on the customs situation, despatch 1272 of March 10 entitled Japanese members of the Chinese Maritime Customs and enclosure 1 to despatch 137 [1307] of March 30 on the Shanghai customs situation98 supply considerable background on this matter.
Repeated to Hankow, Peiping and Tokyo.
- None printed.↩