Evening star., 1937-11-28
HULL WARNS TOXIC.
NOT TO TAKE OVER.
CHINESE CUSTOMS
Concern Is Expressed for
Future of Trade "0pen
Door,"
REPRESENTATIONS ALSO
MADE BY GREAT BRITAIN
Fear for Commerce Is Spured by
Drastic Reduction Of Exports
to Manchuria.
BACKGROUND

BACKGROUND
American and British hare Iona
had interest in Chinese maritime
custonN because Of security for in
ternational loans to China in re-
cent decades. Conquest by Japan
OF Shanghai, Tientsin and other
coast cities imperils continued dis
tribntios1 OF revenues collected bv
customs in accordance Nth terms
OF the loan agreements. Japanese
authorities Friday took oper all
communication facilities at Shuro-
hal and assumed all former tunc-
t'ons OF Chinese oopernme ent in
metropolis.
BY the Associated Press
Secretary Hull concerned for the
future Of China's commercial open
door" warned Japan yesterday that
the United States could not look with
equanimity on any attempt to tamper
with the Chinese maritime customs
system.
Acting on his instructions, Amer
lean Ambassador Joseph c. Grew
formally notified the Toxic foreign Of
flce that the American Government
would be very much concerned" if
the japanese conquerors of Shanghai
and other parts of China disturbed the
integrity of the Chinese customs SER
vice.
Others Lodge Protests.
The Secretary of State, in making
this known at his press conference,
announced also that the State Depart
ment was maintaining close contact
on the subject with other governments,
some of whom, notably Great Britain,
have lodged similar representa- tions
With the Japanese government.
Whether Washington and the other
protesting powers contemplate fur
ther action with respect to the GUS
toms situation was not made known.
But ofilcials here did not attempt to
disguise their growing anxiety over
the possible consequences to American
trade and financial investments in
China If the customs ports were seized.
uppermost in their calculations was
the question whether such big ship
ping centers as Shanghai and other
coastal cities might be treated like the
interior Chinese customs depots which
were taken over in the japanese con-
quest OF Manchuria in 1928.
Since then, trade authorities said
American and other foreign exporters
have been able to enter the Manchu-
rian market only with the small cate
gories Of goods Japan was unable to
supply.
approximately 55 per cent of Amer.
ica's annual exports to China proper
amounting in 1886 to about $4,000.
600. move Though the Shanghai Gus.
toms.
1886 Revenue Sloo, 200, 900.
The Chinese customs service, which
collects tariffs and other port assess
ments on the importation of foreign
goods. Is one of the central govern
ment's chief sources of revenue. A
ma jor PARTON of such revenues, which
amounted last year to approximately
$l00, ,000,0 900. is pledged by agreement
with foreign powers to the payment
OF interest and services on various
foreign obligations
United States investors hold only q
relatively small portion of the total
Chinese obligations abroad. Secretary
Hull indicated that this Government
was as much concerned over the prin.
ciples involved as the actual monetary
stake.
American holdings are involved in
only two of China's foreign obligations
which are guaranteed by its customs
revenues. They are the Hukuane
Railroad loan bonds of 1911. of which
5,650.00 pounds sterling now are out
standing and of which American in
vestors originally held approximately
Is per cent.
The second is the $16,6O8, 900 OF
American wheat and cotton credits OF
1881 and 1898, Of which $4,000, ,00O
now, is outstanding These are guar
anteed by Chinese consolidated taxes
as well as by surtax Of the customs
revenues.
INSISTS ON CONSULTATION.