693.94244/165: Telegram

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

539. The Consulate General at Tientsin has been informed by an officer of the Chinese Maritime Customs that an order has been issued [Page 376] by General Sung Che Yuan’s headquarters for the detention of customs preventive service officers at two places on the Tsinanfu road just outside Tientsin and that instructions from the same quarters were also received on November 4 by the Commissioner of Public Safety in Tientsin that the police were no longer to assist the customs in the seizure of smuggled goods. It seems reasonably certain that Tientsin authorities possibly at Japanese instigation are prepared to block Nanking’s efforts to suppress the smuggling of goods into and out of Tientsin. This belief is strengthened by the fact that the “customs chief inspection bureau for the prevention of smuggling by railroads” is not yet functioning.

Tientsin was informed by the above-mentioned source yesterday that a group of more than 200 Koreans and Japanese, reported to be armed with 2 machine guns, pistols, clubs, and knives, have gathered in Taku with the intention of landing smuggled goods there. A boat bringing smuggled goods from Dairen is expected to arrive off Taku bar about noon today. The customs authorities have brought this to the attention of the Tientsin Japanese Consul General who is said to have called leaders of the gang to his office where they stated, it is alleged, that their activities were being carried on with the approval of the 29th Route Army units stationed in the vicinity of Taku. It is understood that the Consulate General has sent reenforcements to its police station at Taku but whether these are for the purpose of protecting the smugglers or to restrain them is not known to the customs.

At the request of the Tientsin Customs, a customs cruiser has been sent from Chefoo. In addition, the customs have two armed launches. Several sailing junks (one belonging to a British firm) which it is thought the smugglers expect to use to bring smuggled cargo ashore from Taku bar have been seized by the smugglers.

By mail to Tokyo.

Johnson