693.002/360: Telegram
The Secretary of State to the Ambassador in China (Johnson)
212. Your 576, August 31, 8 p.m., in regard to Chinese Customs.
1. We have a historical interest in the preservation of the administrative integrity of the Chinese Maritime Customs and a material interest in the safeguarding of the Customs revenues. Our historical interest is derived from the fact that American nationals, with other foreign nationals, have been instrumental in building up the present Chinese Customs administration. Our material interest is based upon the fact that certain obligations of the Chinese Government to the American Government and to American nationals are secured by Customs revenues.
2. While we deplore the circumstances which have given rise to an offer of the “terms” mentioned in your telegram under reference, Ave are inclined to agree that acceptance by the Chinese of those “terms”, under the circumstances and in view of the alternative suggested, would be expedient. The terms offered might, if faithfully carried out, safeguard our financial interest in the Customs revenues, and might also tend to preserve, in a modified form, Chinese control over Customs administration.
3. The following telegram to the American Group from Bennett82 has just been read to us over long distance telephone from New York:
“Japanese threatening to impound customs revenues Tientsin China releasing foreign loan quota only. Customs revenues by end of September probably inadequate Boxer Indemnities and foreign loans. [Page 860] Salt revenues likely to be in similar position. British propose and French agreeable endeavor induce Chinese and Japanese agree deposit all customs and salt funds in Hong Kong and Shanghai Banking Corporation as trustee for bondholders Banque de l’Indo Chine and the National City Bank of New York to participate in such deposits as sub-depositaries. If you approve will join British and French in requesting diplomatic assistance for tnis purpose. Charles R. Bennett.”
This seems to the Department to warrant consideration.
4. The Department desires that you consult with your interested colleagues in regard to the matter and report the result of such consultation to the Department.
- Charles R. Bennett, China representative of the American Group at New York under the Consortium Agreement of October 15, 1920; for text of agreement, see Foreign Relations, 1920, vol. i, p. 576.↩