693.002/427: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received 10:30 p.m.]
1176. British Chargé d’Affaires has handed me copy of the report from the Commissioner of Customs at Tientsin to the Inspector General [Page 907] of Customs sent through British channels from which it appears that a Japanese named Matsubara, former employee of the customs, who is supported by a considerable group of junior Japanese military officers, has arrived at Tientsin with a large party of Manchukuo Customs employees ready to take over the customs for the new Chinese Government at Peiping which claims control down to Shanghai and Nanking, Shantung being about to throw in its lot now that Nanking has fallen. The report says that the senior Japanese civil and military officials are opposed to Matsubara, and it has been indicated to the Commissioner of Customs that the issue depends on whether he will recognize the new de facto regime in which case Matsubara and his party will be sent back to Manchuria and the present Commissioner of Customs at Tientsin, a British subject, will in due course be appointed Inspector General of Customs after the new government has ordered the present Inspector General to remove to Peiping and it [he?] has failed to do so. The Commissioner of Customs atTientsin has expressed the opinion that he can see no alternative to recognition of the new government; otherwise the whole customs service will crash. He considers it will be useless now to try to bargain or temporize. His reply to inquiries as to his attitude has been that it is the policy of the customs as well as his own policy to have the good of China and undivided integrity of the customs service at heart to the exclusion of all else, and to the suggested offer to him of the post of Inspector General that would conflict entirely with his declaration of undivided integrity of the Customs Administration.
- 2.
- In a confidential memorandum submitted last night to the Committees, the Inspector General recommended the interested powers should: (1) make representations at Hankow to advise the Ministry of Finance not to oppose a provisional settlement on the lines followed in the past, that is a temporary provisional recognition by the local agent [of] customs of the de facto authorities which would for the time being insure their protection without which the local customs cannot function and at the same time would preserve the integrity of the service, and; (2) make representations at Tokyo that any action regarding the control of the customs should be deferred until such time as the de facto government becomes recognizable as the government of the country.
- 3.
- At a meeting with the French Ambassador, British Chargé d’Affaires and myself this morning, however, Inspector General stated that through the Japanese Chief Secretary of the Customs he has ascertained that the Japanese Embassy here is not aware of the details of the move being made in the north and that it is urging Tokyo not to take precipitate action. The Inspector General therefore does not now recommend any action by the interested powers. He stated [Page 908] his apprehension that the Ministry of Finance may instruct him to direct the Commissioner and his staff at Tientsin to withdraw and not recognize or submit to any de facto authority. If such instructions were received and issued the integrity of the customs service would be destroyed. He believes the National Government would be prepared to destroy it rather than take a more reasonable course.
Repeated to Tokyo and Hankow.