693.002/1048: Telegram
The Consul at Shanghai (Butrick) to the Secretary of State
[Received 8:45 p.m.]
954. Reference my 777, August 14, 6 p.m. The following information has been given me confidentially by the Inspector General of [Page 726] Customs regarding a call received on September 16 from Mr. Sherman Chang, “director general” of the Nanking Government’s “Customs Administration” and Mr. Ishiguro of the Japanese Consulate General. Mr. Chang stated that the difficulties of the Inspector General had been recognized by not requiring his formal appointment by the Nanking Government but that closer contacts should now be established. The Inspector General replied that because of the delicacy of his position he was uncertain of the form such closer relations could take. He says that he made it clear that he could not officially accept any formal appointment from the Nanking Government but that he was prepared to have informal relations with the Nanking Government in respect of fiscal affairs. Mr. Chang stated that at the close of the year after Japanese recognition of the Nanking Government he proposed to have further discussions with the Inspector General and that it would then be necessary to fix a definite procedure for such matters as the formal acknowledgment of communications to the Inspector General from the Customs Administration. On parting Mr. Ishiguro took occasion to remark that he believed the present system in which the individual action [Inspector General] enjoys considerable independence vis-à-vis the Japanese authorities could not for that matter be expected to continue.
Sent to the Department, repeated to Chungking.