893.51/5285
The Consul General at Tientsin (Gauss) to the Minister in China (Johnson)44
Sir: With reference to my previous reports concerning the attempt of General Yen Hsi-shan to sequestrate the surplus Customs revenues [Page 233] at Tientsin, I have the honor to inform you that the system under which the Commissioner of Customs has undertaken the direct collection of the duties has been put into effect without serious difficulty and there has been no change in the situation.
It is stated here by Chinese that the Commissioner is depositing the revenues as collected in the Hongkong & Shanghai Banking Corporation. This does not, however, constitute the appointment of the British banking corporation as Customs Bank.
From Chinese sources, the Consulate-General is informed that the Shansi authorities have been making desperate efforts to persuade the Commissioner of Customs to alter his attitude and to conform to the instructions of General Yen, but the Commissioner, naturally, maintains that he must be governed by the instructions of the Inspector General of Customs.
Chinese press reports quote Shansi officials as declaring that drastic measures will, if necessary, be taken to enforce compliance with General Yen’s instructions; but it is admitted that the Shansi authorities here and at Peiping are in much of a dilemma over the matter.
It is known that the possibility of the establishment of a Shansi-controlled Customs is being considered. It appears to be conceded that there is little hope of inducing the French authorities to permit the Shansi faction to enter the French Concession and take over the present Custom House.
In connection with the possible establishment of a Shansi-controlled Customs, I am informed that a financial representative of the Shansi faction inquired of the Acting Japanese Consul-General as to whether a Japanese assistant in the Custom House at Tientsin would be permitted to accept appointment as Commissioner under the Shansi regime. The Japanese Acting Consul-General tells me that he met this question by one of his own—whether a de facto Government had been established in the North by the faction opposing the Nanking government.
Curiously enough, the discussion amongst the Chinese as to the possible establishment of a Shansi-controlled Custom House at Tientsin seems to contemplate the opening of such an establishment in either the ex-Russian or the ex-German Concessions at Tientsin. If the Shansi-faction were desirous of establishing their own Customs, it seems to me that they could do so more effectively, and with less likelihood of foreign complications, at Tangku—at the mouth of the river—where ships entering the Hai Ho might be stopped and required to pay Customs duties before being permitted to proceed upstream to discharge. Collections would necessarily have to be made on the basis of the manifests; but even if a separate Customs is [Page 234] established, it is not likely that a full appraising and examining staff could be recruited, so that the assessment of duties on the basis of the cargo manifests would likely be all that could be ordered.
If a Custom House is established in the ex-Russian or ex-German Concession, it would be necessary to require ships to berth along those areas. There is but limited berthing space along the ex-German Concession, and the situation along the ex-Russian Concession is hardly more satisfactory. At present most ships berth along the British and French Concessions.
It is the opinion here that if the Shansi faction, with or without the establishment of a Government, attempts to set up an independent Custom House, the National Government will declare the port of Tientsin closed and refuse clearance for vessels proceeding from Chinese ports to Tientsin. This might not, however, discourage ships from Japan ports and Hongkong from proceeding directly to Tientsin. A naval force would probably be required to enforce a blockade of Tientsin; and there may then arise the question of the Protocol45 and open communication between Peiping and the sea.
I am informed that General Yen is continuing to instruct his officials at Peiping and Tientsin to carry out the instructions for the sequestration of the surplus Customs revenues, but the officials on the spot, confronted with the realities of the situation, find it impossible to act; the opinion is accordingly held that for the time being no move will be made. If, however, a Government is finally established at Peiping and claims recognition as the de facto authority, the Chinese authorities believe it will be less difficult to take action without foreign opposition and possible intervention.
The Consulate-General is continuing to watch the situation and will inform the Legation of any developments.
I have [etc.]
- Copy transmitted to the Department without covering despatch; received June 19, 1930.↩
- Signed at Peking, September 7, 1901; Foreign Relations, 1901, Appendix (Affairs in China), pp. 312, 316.↩