Negotiations on Japanese control of the Shanghai Maritime Customs have come to a deadlock, Mr. Koki Hirota, the Foreign Minister, declared in the Lower House yesterday afternoon.
"However, the Japanese authorities are pursuing a policy of keeping a vigilant watch over the customs revenue and therefore, the customs revenue is being placed in the Yokohama Specie Bank for safe-keeping."
Mr, Hideyoshi Tamura, of the Min-saito, asked if the customs revenue is to be appropriated toward the funds set aside for rehabilitation work in the' Shanghai area. The Foreign Minister replied that he did not think the monies would be used for such purposes, "inasmuch as military opertions still were in progress and the revenue has decreased."
"Japan has no intention to take over the Shanghai Customs," Mr. Hirota declared. "but instead is pursuing a policy of keeping surveillance over the Customs revenue."
Owing to the decline in the revenue it was considered insufficient for covering the expenditures in rehabilitation of war-damaged areas, he stated—Domel.
Text read from the printed page and cleaned; old type leaves the occasional error.