693.002/431: Telegram

The Consul General at Shanghai (Gauss) to the Secretary of State

1240. A press report from Osaka says that ships from Japan are now free again to carry cargo to Shanghai, that such cargo is classified into three categories: (1) munitions and supplies under army and navy certificates, (2) daily necessities for Japanese raw silk and building supplies and, (3) other cargo, and that goods in categories (1) and (2) are to be free of import duty.

2.
I have made quiet inquiry and learn that Japanese ships are not paying tonnage [dues,] file few if any manifests of cargo, and land passengers principally Japanese without examination of baggage which probably includes duties.
3.
In the present delicate position of the customs duties little can be said or done about the matter. I have not found the Japanese Consul General disposed to resume conversation on the customs question since my last report.

Repeated to Tokyo.

Gauss