693.002/762: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received October 19—3:26 p.m.]
1350. In a confidential letter received today from the Inspector General of Customs he points out that in view of the imminent fall of Hankow and Canton it is expected that Japan will adopt a still stronger and more aggressive attitude in conjunction with the Chinese Customs Administration and through the medium of the “Reformed Government” may insist upon dominating the policy of Inspectorate General. He argues that should such a situation arise it would be detrimental to Chinese and foreign commercial shipping and financial interests in China. He states that treaties and circumstances have invested the Inspectorate General with an international character and have charged the Customs Administration with various responsibilities not usually undertaken by customs authorities elsewhere. These responsibilities provide for uniformity of tariff rates and equality of fiscal treatment; for the maintenance of the Open Door policy; for the administration of the Lighthouse and Harbor Department; and for the service of domestic and foreign loans. In order to protect these responsibilites, in the opinion of the Inspector General, an essential preliminary is the preservation of the integrity of the service and the continuation of the existing [Inspectorate?] system on broad international lines with equal facilities, without discrimination, for all. He therefore suggests that the interested powers may consider it expedient at the present juncture to issue a further statement [Page 746] to the effect that they expect the integrity of the customs and the existing constitution of the Inspectorate to be maintained. He believes that the general customs position would thus be strengthened.
Repeated to Chungking, to Peiping and Tokyo by confidential despatch.