POWERS' NOTES

New Zealand Herald, Volume LXXIV, Issue 22900, 1 December 1937, Page 13

POWERS' NOTES

INTERNATIONAL" ARTT.A STATUS OF THE CUSTOMS JAPANESE REASSURANCE By Telegraph—Press Association—Copyright • TOKIO, Nov. 29 After the delivery of the British and American Notes, regarding the International Settlement at Shanghai, the Foreign Office spokesman said: "I emphasise that Japan does not intend to disturb the present status of the Shanghai Customs Depal tracnt and will respect the interests of the other Powers entitled to certain amounts on account of loans." The spokesman added that he was not able to reveal the contents of the Notes, but said there wero no protests. Jhe Customs administration was definitely part of the Nanking' Government, therefore Sir Frederick Maze, Inspector-General of Customs, although a Briton, was regarded as an employee of the Chinese Government. Japan must control the Customs because it would be intolerable for China to apply the proceeds to the purchase of munitions and foodstuffs. Negotiations with the local Chinese Customs officials were progressing smoothly. It was very likely that Britain would be consulted about the ultimate arrangements. "I am certain that control will end when hostilities cease," the spokesman added. The official revealed for the first time that Manchukuo Customs quotas duo to the Powers on account of loans had been deposited, in the Central Bank of 1 Manchukuo and would be available after a simple negotiation. This procedure probably would be adopted at Shanghai. The sppkesman said that although foreign rights would be preserved Japan considered it unnecessary to consult Britain and America regarding projected actions in Shanghai, which were wholly matters of military strategy. Japan did not intend to interfere with the administrative functions of the Municipal Council. Anything done would be purely provisional and a matter of military expediency. All the Customs revenues at Tientsin were being paid into the Japanese Yokohama Specie Bank, which was servicing foreign but not domestic loans.