Taylor's tenure as commander of the Asiatic Fleet was a tumultuous one. On February 24, Taylor helped Italy and China avoid an international incident. An artillery shell from the mainland hit the Italian Navy ship "Libia", leading the Italians to threaten retaliation. Taylor convinced the Italians that, in the absence of any intentional shelling, they should consider the matter closed. His advice was taken, and Admiral Pratt publicly praised him for his quick thinking. On March 5, 1932, Taylor joined a joint British, French, and Italian committee sponsored by the League of Nations to investigate the war between China and Japan. The Asiatic Fleet returned to Manila in late March 1932. In May 1933, Taylor ordered the Asiatic Fleet to make a goodwill tour of Japan. He was cordially received by Emperor Hirohito.