893.51/4432

The Secretary of State to President Coolidge

My Dear Mr. President: I have the honor to inform you that a situation has recently arisen at Canton, China, which appears seriously to threaten the integrity of the Chinese Maritime Customs. The local Canton Government, under the leadership of Sun Yat-sen, and in professed independence of the recognized Government of China, is threatening to seize the Canton Customs House and to collect on its own behalf and for local official purposes the Customs revenues of that port.

Our immediate interest in the question lies in the pledge of the revenues of the Chinese Maritime Customs as security for the payment of the Boxer Indemnity. The Customs revenues have hitherto been uniformly respected by local factions; and, should [Page 562] the threatened seizure actually be made, it is altogether likely that the precedent will be quickly utilized by other local and provincial governments, thus resulting in the complete disintegration of the Customs.

It is the opinion of the representatives in Peking of the Powers principally interested, in which our own Legation concurs, that there should be a concentration at Canton of the available naval units of the Powers having war vessels on the China station for the purpose of deterring the Canton Government from its threatened course of action. The financial and military position of the Canton Government is weak; and it is confidently believed that a show of force will be sufficient to achieve the desired end of maintaining the integrity of the Customs.

Before, however, seeking the cooperation of the Navy Department in this course of action, I desire to submit the matter for your consideration. In view of the urgency of the situation, I have the honor to request that I may be informed of your views thereon as soon as you may find it convenient so to do.

Faithfully yours,

Charles E. Hughes