693.002/368: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received 3:55 p.m.]
648. Department’s 227, September 10, 1 p.m. I am informed by British Embassy that British action in Tokyo refers specifically to situation set forth in my 576, August 31, 8 p.m., and to the one behind Japanese communication to Commissioner of Customs. Action was intended to let Japanese know that British knew of proposal and renounce [sic], and to obtain from Japanese an assurance that they would respect British interests in revenues of customs and salt. Action did not relate to matters discussed in the Department’s 212, September 3, 9 p.m. and Shanghai’s 650, September 4, 3 p.m. With reference to this latter question it is my belief that Chinese Government will be loath to accede to an arrangement which will deprive them of entire customs revenue in favor of foreign bondholders when they are fighting for their national existence. It is my belief that Chinese will propose a moratorium instead. Neither French nor British Embassies have as yet received instructions.
Repeated to Peiping and Shanghai.