25 JUNE 1932, Page 2

More Manchurian Trouble

The seizure of the Dairen Customs revenue by the nest Manchukuo State raises grave issues as between China and Japan, and the Vigorous protest made by Mr. T. V., Soong, the Chinese Finance Minister, to the Lytton Commission is not surprising. Dairen is, of course, under Japanese control,, and by an arrangement dating back to 1907 the customs there were placed under the Chinese Maritime Customs Administration, the efficient depart- ment built up by Sir Robert Hart, and the revenues,- most of which are earmarked for foreign debt services, have been regularly remitted to Shanghai.-.nig therefore'

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with full Japanese connivance that funds representing fifteen per cent. of China's whole maritime customs revenue are being thus impounded, and that in spite of the fact that Dairen is leased territory, and neither the old Manchurian nor the new Manchukuo administration has any locus standi there. Lord Lytton's Commission will no doubt deal with the situation in its report, but that will mean long delay, and China will no doubt raise the question as a matter of urgency at Geneva.