Foreign Relations of the United States Diplomatic Papers, 1937, The Far East, Volume III

693.002/372: Telegram

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

Nanking, September 18, 1937—noon.
[Received 4:43 p.m.]

675. My 576, August 31, 8 p.m. and Department’s 212, September 3, 9 p.m. During a call which Minister for Foreign Affairs⁸⁸ made on me this morning I handed to him following aide-mémoire:

“The American Embassy has received a report that the Japanese Consul General at Tientsin has approached the Commissioner of Customs at that port in regard to handling of maritime customs revenue in North China and has intimated that if the proposals made by the Consul General are not accepted the Japanese military authorities will take over the customs offices in all areas occupied or controlled by the Japanese forces and will establish a customs administration under Japanese control.

It is commonly accepted that China’s credit is largely built on the integrity of the Customs Administration and it seems highly essential to maintain that integrity if it is at all possible. Consequently the American Embassy suggests that it would be highly advisable for the Chinese Government to authorize the Commissioner of Customs at Tientsin to make such arrangements with the Japanese military authorities as shall be most in the interest of China and shall at the same time and as far as possible preserve the integrity of the Customs Administration. As matters now stand it is very much to be feared that in the lack of some such arrangement the Customs Administration in North China may be completely destroyed.”

British and French Embassies are taking identic action but separately.

Dr. Wang stated that he would give matter sympathetic consideration. He stated that Chinese Government in this matter is concerned over possible establishment of a precedent whereby they might later find themselves committed to joint control with Japan over customs surplus, a situation they wish to avoid in order to be free to use customs surplus in their own interest and without dictation from outside.

Sent to Department. Repeated to Shanghai, Peiping. Inform Tientsin.

Johnson

88. Wang Chung-hui.