693.94244/151: Telegram

The Ambassador in China (Johnson) to the Secretary of State

473. The representative of the Ministry of Finance has returned to Nanking. Nothing definite can be learned regarding the plans of the Chinese authorities relative to the smuggling situation, but it is rumored that a new committee will be formed composed of members of the Chinese Maritime Customs, Hopei-Chahar Political Council, and the Ministry of Finance, the function of which will be the disposal of the accumulation of smuggled goods in Tientsin.

It is reported that smuggled merchandise continues to move out of Tientsin to the interior by roads and canals, but that only very small quantities of these goods now pass into Shantung and Honan due to interference by the authorities. Tsinanfu reports that 12 truck-loads of such goods (mainly rayon, sugar and cigarette paper) are said to have arrived there on September 23, and that on the same day 60 truckloads left Tientsin for Tsinanfu. The trucks are said to be driven by Chinese and carrying Japanese guards who are armed with rifles and machine guns. Tsinanfu understands, however, that the Chinese authorities have instructed the natives living along the route followed by the trucks to dig ditches across the roads and create other obstructions. This may result in decreased smuggling but will also ruin motor roads in Shantung.

Johnson