The Consul at Shanghai ( Stanton ) to the Secretary of State
[Received November 9—9:20 a.m.]
Reference Shanghai’s November 3, 11 a.m.65 In a letter dated November 3 the Inspector General acknowledged the receipt of the informal letter mentioned in the reference telegram.
Sir Frederick stated that he appreciated the valuable support invariably extended in the past by the United States Government in connection with his efforts to maintain the integrity of the customs administration during the present crisis; that he realized that the representations recently made to the Japanese Government in Tokyo were intended to strengthen the position of the Inspector General and that the American Government should advise him to yield to British insistence in this matter. The Inspector General pointed out, however, that Japanese pressure has not been relaxed and that funds essential to meet current expenditures of the Inspector General and the maintenance of the customs administration continued to be withheld. In these circumstances he stated he hoped it would be understood that it would be inexpedient for him to indefinitely oppose the demand for the appointment of a commissioner of Japanese nationality at Shanghai and that he had advised Dr. Kung in this sense. In conclusion, the Inspector General stated that he could not set aside entirely the treaty with the occupying power (Japan) and at the same time expect to be permitted to retain the partial control which he now exercises in occupied China.
Sent to Chungking. Repeated to Department, Peiping. Code by air mail to Tokyo.