Foreign Relations of the United States Diplomatic Papers, 1938, The Far East, Volume III

693.002/485a: Telegram

The Secretary of State to the Ambassador in Japan (Grew)

Washington, February 3, 1938—9 p.m.

37. Shanghai’s 179, February 1, 9 p.m. (which Shanghai has been requested to repeat to you), and Shanghai’s 113, 146, and 170 in regard to Customs.⁵³

In the light of your knowledge of the Department’s position in regard to the Chinese Customs, the Department desires that you discreetly bring to the attention of your British and French colleagues, without reference to source, the views expressed in paragraph 3 of Shanghai’s 179; that you frankly discuss with them, on a basis of expediency and the realities of the situation, the possibility and advisability of concentrating on defensive efforts in regard to the major issues relating to and involving preservation insofar as possible of the administrative machinery of the customs and provision for the servicing of foreign loans and indemnity quotas, as contrasted with effort to preserve the existing situation at all points and in all features; and that you endeavor to obtain favorable consideration of the proposal that approaches be made to the Japanese Government by each of you individually along the following lines:

The Department suggests that you acquaint the Japanese Foreign Office with the fact that you have information with regard to the character of the Japanese proposal made at Shanghai to the Commissioner of Customs for a settlement of the Customs problem; that in connection therewith but without indicating approval or disapproval of the proposal you refer in general to the assurances which we have expressed a desire to receive from the Japanese Government (Department’s 339, December 12, 3 p.m.⁵⁴); and that you express an earnest and emphatic desire to receive from the Japanese Government positive assurances that no action will be taken or countenanced which will disrupt the Chinese customs service or jeopardize the servicing of foreign loan and indemnity quotas from Customs revenues, but that on the contrary in any arrangement reached the administrative machinery and procedure of the Customs will be carefully preserved and the payment on an equitable and unconditional basis of foreign loan and indemnity quotas will be provided for.

Please inform the Department and Shanghai of the result of your discussions and approach, if made, to the Japanese Government.

Repeated to Shanghai.

Hull

53. Telegram No. 113, January 20, 6 p.m., p. 632; No. 146, January 26, 7 p.m., p. 635; No. 170, January 29, 4 p.m., p. 637.
54. Foreign Relations, 1937, vol. iii, p. 900.