COMMENT ON NOTES.

Wairarapa Age, 30 November 1937, Page 5

COMMENT ON NOTES.

BY JAPANESE OFFICIAL SPOKESMAN. CONDITIONS OF CUSTOMS CONTROL. (Received This Day, 1.5 a.m.) TOKIO, November 29. After the delivery of the British and American Notes, the Foreign Office spokesman said:— "I emphasise that Japan does not intend to disturb the present status of the Shanghai Customs and will respect the interests of other Powers entitled to certain amounts on account of loans.” He added that he was unable to reveal the ctntents of the Notes, but there were no protests. The Customs administration was definitely a part of the Nanking Government and therefore Sir Frederick Wade, InspectorGeneral of Customs, although a Briton, was regarded as an employee of the Chinese Government. Japan must control the Customs, because it would be intolerable that China should apply the proceeds to the purchase of munitions and foodstuffs. Negotiations with the local Chinese Customs authorities were progressing smoothly and it was most likely that Britain would be consulted about the ultimate arrangement. "I am certain the control will end when hostilities cease,” the spokesman said. The spokesman revealed for the first time the Manehukuo Customs quotas due to the Powers on account of loans had been deposited in the Central Bank of Manehukuo and would be available after simple negotiation. This procedure probably would be adopted at Shanghai. The spokesman said that although foreign rights were being preserved, Japan considered it unnecessary to consult Britain and America regarding her projected actions in Shanghai which were wholly matters of military strategy. Japan did not 'intend to interfere ini the administrative function of the Municipal Council. Anything done would be purely provisional and a matter of' military expediency. All Customs revenues at Tientsin were being paid to the Japanese Yokohama Specie Bank, which was servicing foreign, but not domestic loans.