The announcement of certain Japanese intentions toward the administrative offices of the Chinese Government still operating in Shanghai indicates recognition of the international issues involved, especially in respect of the Maritime Customs. The interests of Japanese themselves are best served by special consideration of that kind, but it will be necessary for the various authorities to give the matter close attention lest some lack of foresight should unnecessarily complicate an already complicated situation to the further detriment of basic commercial and financial arrangements vital to the international relations which Japanese policy is declared to aim at respecting. The Customs Revenue is hypothecated for the service of the foreign loans and it appears to be the purpose of the Japanese authorities that that function should continue to be discharged. They desire to assert their de facto right through military control only in respect of the surplus accruing after that primary obligation has been fulfilled. The whole question of the disposal of Customs Revenue obviously requires the careful consideration of other foreign governments and it is to be hoped, therefore, that the Japanese Government will be able to agree to a workable scheme and to discourage precipitate action which might later be regretted. It will be admitted that the peculiar problems arising from the complexity of the relations of the Customs present everyone concerned with delicate diplomatic and commercial difficulties and consequently call for the exercise of the greatest circumspection and the display of a reasonable spirit of compromise.
No doubt expeditious discussions are already in train between the Japanese Government and the various Powers concerned. It is satisfactory to observe that the military authorities on the spot, while indicating their desire to ensure that the operations which they are now conducting shall not be hampered by the presence of Chinese organs in the foreign-controlled areas, are disposed to recognize the need for caution in respect of certain|* institutions, such as the Customs and other departmental offices. It remains for the other parties to approach this issue in the spirit which the situation demands. It is important that the service of the foreign loans should be maintained and also those other activities which affect the lawful occasions of neutrals in this port. The Japanese Government has consistently maintained its solicitude for the interests of neutrals and as, indeed, those interests in important s are shared by Japanese nationals is all the more ground for confidence in the competence of diplomatic discussion to arrive at a correct and amicable solution. illustration of the special difficulties created by these hostilities, the seizure of the Whangpoo Conservancy Board Dredger, Chien She, is pertinent. By the International Peace Protocol of September 7, 1901 an agreement for the Whangpoo Conservancy was established. It was revised in September 1905 and replaced by a new agreement under the auspices of the newly-founded Republic of China in 1912. The essential feature of the dredging arrangements carried under this reement is the international significance of ihe maintenance of a channel for big ships to use the Whangpoo and the port of Shanghai. Special dues, known as Conservancy dues, 80 per cent. of which are paid by foreign shipping are levied for the financial support of the Conservancy Board. Moreover, a Consultative Committee composed of one Chinese and five foreign members, these latter representing the powers with the greatest visiting tonnage, has been appointed under the 1912 agreement to advise the Board, It is plain, therefore, that the dredger is an important factor in preserving interna tional interests Japan herself shares. There is no reason to believe that the implications of the seizure will be ignored by the Japanese authorities. It is necessary, however, to explain its significance so that there can be no misunderstanding. In that and the cognate matter of the Customs administration it is hoped that the discussion between the Japanese and the appropriate authorities will proceed on lines which will facilitate a settlement conally safeguarding international rights and satisfying the immediately reasonable requirements of the Japanese High Command.
Text read from the printed page and cleaned; old type leaves the occasional error.