693.002/1121: Telegram

The Ambassador in Japan (Grew) to the Secretary of State

1422. Department’s 561, September 3, 8 p.m. via Shanghai and 406, July 17, 10 p.m. via Shanghai, withholding by Japanese of funds normally handed over to Inspectorate General [of] Chinese Maritime Customs.

Just before receipt of the first mentioned instruction directing me to supplement my previous representations on this subject, there was received from the Foreign Office a note dated September 2 in reply to my note of July 28 to the following effect:

“Recently the attitude of the Inspector General in regard to cooperation with the Japanese authorities has not been in conformity with the existing situation and has been regrettable in some respects. Therefore, the Japanese authorities in the locality concerned consider it inappropriate to continue such well intentioned actions and have been obliged to suspend remittances for current expenses of the Inspectorate General. So long as the attitude of the Inspector General is not corrected, consideration cannot be given to a renewal of these remittances.”

In view of the foregoing which is a definite statement of the Japanese attitude in this matter, does the Department wish to supplement its instructions to me of September 3, 8 p.m. upon which I have thus far postponed acting?

Sent to the Department via Shanghai. Shanghai please repeat to Chungking, Peiping.

Sent to the Department. Repeated to Chungking, Peiping.