693.94244/156: Telegram
The First Secretary of Embassy in China (Merrell) to the Secretary of State
[Received October 9—9:45 a.m.]
491. Embassy’s 473, October 3, 11 a.m. No official announcement has been made relating to plans for disposing of smuggled goods now held in Tientsin, regarding which the authorities concerned have held numerous conferences in Tientsin during the last 2 weeks, but the [Page 347] Consulate General at Tientsin has received information which it believes to be reliable to the effect that a certain Japanese firm in Tientsin now collects a tax of 48 cents per unit on kerosene smuggled into Tientsin, following which the kerosene is distributed freely in eastern Hopei and Chahar. It is said that the proceeds of the tax are paid over to the Chairman of the Hopei-Chahar Political Council.
By mail to Tokyo.