693.002/1042: Telegram
The Consul at Shanghai (Butrick) to the Secretary of State
[Received August 14—2:45 p.m.]
777. Reference my 701, July 27, 11 a.m.; and Department’s 350, August 6, 5 p.m.56 The Inspector General of Customs informed a member of my staff yesterday that the Japanese had increased their pressure on the Inspectorate General especially in regard to the customhouses on the border of the Kowloon leased territory. He said that the Japanese had intimated that they would increase their pressure on the customs administrations in occupied territory such as Shanghai if he did not comply with their requests in regard to the Kowloon border stations before cited. The General also said that when the Japanese Government recognized the Wang Ching Wei regime the latter might appoint him Inspector General and insist on his acknowledging the appointment. He said he was not prepared to do so and that he could withdraw to Kunming or Chungking but that he feared the integrity of the Inspectorate General would be destroyed if he left Shanghai. He intimated that he has had difficulty in obtaining from Chungking permission to make sufficient concessions to the Japanese on minor matters in order to preserve the latter’s acquiescence in his continuing to function as Inspector General.
He emphasized again (see my 701, July 27, 11 a.m.) that he feels that a public reiteration of the attitude of the American Government in regard to the integrity of the Chinese Maritime Customs would improve his position vis-à-vis the Japanese. He did not indicate whether he had requested the British Government to make a public statement in regard to its attitude toward the integrity of the customs.
He said that he would have a précis of his present situation prepared and send it to me.57
Sent to the Department, repeated to Chungking.