'There was high tension in front of the iron gates of the Central Bank of China "Customs Duty Collecting Omce yesterday at about 4 p.m. when about 30 Japanese military officers, many of them in plain clothes, were seen' milling around the premise They did not yo into the bank build. ing. Their exact purpose was not made known, but the fact is general-known that without the eo-operation of this important branch of the Chinese bank, Mr. Li's order ea hardly be carried out because officials there who are actual collectors of the duties are Chungking appointees.
For a time it was rumoured yester-lay afternoon that the branch bank had been taken over, but when a 1 porter went there after the Japanese had gone, all offeiais and their os alstants, were, still working because it Was a "rush" day. It could not be ascertained what will happen today Dut Informed quarters thought that it would be Likely that they would withdraw should their office be taken over. The office was heavily guarded by Customs river police and, outside the gates Settlement police stood 'The ofllee had been thronged with people throughout the day until 4 am, the closing hour, for as the new order would require' people to pay much more today, traders tried their est yesterday to obtain Customs papers, It was learnt that during the tush hour responsible offelals of the branch bank were bombarded with telephone calls asking them whether or not they Would colicer the tax ac~ cording to Mr. Li's order, It was thought thal they were people loyal to Chungking, chu eking Surprised Chungking, Aug. 31.
The new Shanghai customs order, requiring the payment of all customs dues in Hua Hsing Commercial Bank notes, came as a complete surprise to the Chinese authorities here, while the British Diplomatic Mission Jig also without information on the subject, The Ministry of Finance is understood to be asking for further information from the British Embassy ju regard (0 this new customs order, through the Mission.
"The Chinese authorities are said to be especially puzzled over the words "in accordance with Government instructions," since the Chinese Government has never issued such in-
The Chinese authorities are taking a serious view of the matter and are anxiously awaiting a reply from the British Ambassador.—Reuter, coffees yesterday afternoon.
we neties were posted inthe the fit oon; the public was" informed that cheques ore only" acceptable Issued by Japanese oF foreign banks or the Hwa Hsing Bonk, or if certified food for payment by' these institu. Mions, "Furthermore, all' cheques would in future have to be made payable to. the Yokohama Specie Banke Standaed dollars, the notice further stated, would only be accept able up to a' maximum amount $100. ""'the second notice fixed the flee hours as ending at 3 pin. daily which will cause considerable difieulles for exporters as hitherto It was possible to pay export duties up lo Sand 7 pin.
It was understood, however, from rellable™ sources that this. aimmeulty would soon be removed although no Melal statement {0 this effect wat Available yesterday.
"The new regulations will cause an Increase in Import duties of about 83 per cent. while export. duties will Femain unchanged for the time being! and will be payable in Chinese Nac tional dollars as in the past. Customs: brokers interviewed yesterday" said that the now regulations did "not fe tually" mean a large increase some commodities as compared t0 the ftutles in force up to June of last year, when, I will be recalled, now (arift Were enforced, reducing the duty payable for certain commodities considerably, while others were increased, Accounts Liquidated Earlier Very few persons were seen paying customs duly yesterday as most Shanghai businessmen had liquidated all their customs accounts In the Fast fow days of August when it became! Known, that the new. regulations Would be enforced as from yesterday.
Considerable speculation prevailed business circles here yesterday ax to whether Duty Orders. issued by the Central Bank of China before yesterday would be recognized ud ecepted by the new organization and, while no" definite. information. was available on the subject, it was held Likely that this would be the ease.
Meanwhile, members of the River Police wore stationed at all doors to the ofice in question, while a large number of Chinese and. Indian constables of the Shanghai Municipal Police were on duty at the various entrances to the Customs House, Rumours were current. yesterday that the Japanese were also contemplating the taking over of the Shang-hal General Post Office but this was Strenuously denied by Post" OMice officials questioned on the subject yesterday.
Text read from the printed page and cleaned; old type leaves the occasional error.