693.002/633: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
Tokyo, May 5, 1938—7
p.m.
[Received May 5—9:23 a.m.]
[Received May 5—9:23 a.m.]
294. Department’s 157, May 4, 6 p.m.
- 1.
- In my discussion with Craigie of the substance of the Department’s 153, May 2, 8 p.m., he brought out the fact that the Japanese had consented, in the event the Chinese Government should refuse to provide the foreign exchange necessary to remit for loan and indemnity services the 2 million yuan contributed from the customs in areas under Japanese control, to furnish foreign exchange from the customs revenues collected in foreign currencies at Shanghai which amounted to upwards of 3 to 4 million yuan monthly. He further stated that the British authorities in China for their part would [Page 700] endeavor to prevail upon their nationals to continue to pay customs duties in foreign currencies which many of them apparently are now doing. We have had no previous indication from Craigie of this understanding with the Japanese.
- 2.
- In the light of the foregoing I should like to explore the matter further with the British Ambassador before expressing opinion on the approach proposed by the Department. If the Department desires that I do so I would appreciate a rush telegraphic reply,86 as Craigie is to leave Tokyo on Saturday morning the 7th for a visit of some days to the south of Japan.
Grew
- The Department agreed in telegram No. 159, May 5, 6 p.m.↩