SHANGHAI CUSTOMS

Hawke's Bay Herald-Tribune, Volume 81, Issue 58, 1 December 1937, Page 5

|SHANGHAI CUSTOMS

-Press Assn.-

Japan Does Not Intend to Disturb System SPOKESMAN'S ASSURANCE

(By Telfgraph

-Copyright.)

(JBeceivea. l, e.4o a.m.) TOKIO, Nov. 29. After the delivery of the British and American Notes, tfie Foreign Offite spokesman, Mr Tatsua Kawai, saidi "1 emphasise that Japan does not intend to disturb the preseut status of the Shanghai Customs and -vill respect the interests of other Powers entitled to certain amounts on account of lpans." He added that he was unable to r» veal the contents of the Notes, but there were no protests. Japan must contnol the Customs because it woula be intolerable for China to supply tho proceeds to the purchase of munitions find foodstuffs. Negotiations for (the local Chinese Customs sites were progressing smoothly, and it was very likoly that Eritain would be consulted about the ultimate arrangement. "I am certain that the control will end when hostilities cease," he added. The spokesman revealed for the first time that the Manchukuo Customs quotas due to the Powers on account o: -loans were deposited in the Centrai Bank of Manchukuo and would .be available after -slmple negotiation. Th:« procedure would probably be adopted at Shanghai. The spokesman said that, althougft foreign rights were being preaerved, Japan considered it unneeessary to consult Britain and America regarding her projected ac tions at Shanghai, which were wholly matters of military strategy. Japan did not intend to interfere with the administrative fuuctions Of the mimicipal council, and anything done was purelyo pro visional and a mar.ter of military expediency. All Co&toms revenues at Tientsin were being paid to the Japanese special bank at Yokohama, which was servieing foreign but nqt domestic loans.