693.002/373: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received 5:06 p.m.]
679. Shanghai’s 650, September 4, 3 p.m. and Department’s 227, September 10, 1 p.m. During a call which Minister for Foreign Affairs made upon me this morning I handed to him the following aide-mémoire:
“A certain situation disadvantageous to the integrity of the Maritime Customs has arisen at Tientsin and Chinwangtao and it seems desirable to anticipate and, if possible, prevent the possibility of such a situation arising elsewhere in China and with this object in [Page 868] view the suggestion has been made that the Chinese Government instruct the Inspector General of Customs to deposit in the bank of a country not concerned in the present hostilities all the revenue collected at maritime customs stations elsewhere than at Tientsin and Chinwangtao, and that this bank then consult with the Inspector General of Customs with a view to utilizing these funds to meet the service of the foreign and domestic loans secured on the customs revenue, in accordance with their respective rights to priority, and that the remainder of the revenue be disposed of at the discretion of the Chinese Government. It is obvious that if this arrangement were made it would tend to ward off attempts to interfere with the regular administering of the customs and would help immensely to protect the financial credit of the Chinese Government in foreign countries. The American Embassy earnestly suggests that the Chinese Government give careful attention to this proposal.
In this connection, it is suggested, likewise, that if such an arrangement is made for the handling of customs revenues, a similar procedure might be taken into consideration in relation to the loan quotas which the various salt revenue districts are now instructed must be deferred toward meeting obligations secured on the revenues of the Salt Administration.”
Dr. Wang stated that he would give the above suggestion sympathetic consideration.
My British and French colleagues are taking separate but identic action.
Repeated to Shanghai and Peiping.