693.002/688: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received 7:35 p.m.]
279. I am in receipt of a third person note from the Minister of Foreign Affairs dated June 6 from which I quote the following pertinent paragraphs:
“The Chinese Maritime Customs at Shanghai has recently been compelled by the Japanese to enforce an unlawful tariff as from June 1st. Japanese merchants are now paying duty according to this tariff and the other foreign merchants are beginning to do likewise.
This act of the Japanese not only impairs the integrity of the customs but also decreases sharply the customs revenue due the Chinese Government. The customs revenue normally collected at Shanghai constitutes over 30% of the total of such revenue for the whole of [Page 724] China. If duty is collected at Shanghai and at all other places under the control of the Japanese Army according to the unlawful tariff, there will be almost a 60% decrease in customs revenue and the ability of the Chinese Government to meet its domestic and foreign loan obligations will be seriously threatened.
The Chinese Government now recommends that the receipts of the customhouses throughout the country be entrusted to an international committee appointed by the various countries interested in the foreign loans, which, together with the Inspector General of Customs, will take charge of the receipts and service the loans on behalf of the Chinese Government.
The recommendation described above is likewise entirely for the preservation of the integrity of the Chinese Maritime Customs and for the safeguarding of lawful rights of Chinese and foreign nationals. The Ministry of Foreign Affairs requests the American Ambassador to transmit this recommendation to the American Government for favorable consideration. If the levy of the unlawful tariff cannot be prevented, the Chinese Government will be obliged to reconsider ways and means for the repayment of foreign loans.
Seal of Ministry of Foreign Affairs.”
Sent to Peiping, Shanghai.