893.00/8759: Telegram
The Consul General at Hankow (Lockhart) to the Secretary of State
[Received April 23, 1927—10:10 a.m.]
31 to the Legation. At a conference with Ch’en today lasting almost an hour and at his request, the deplorable state of foreign business at Hankow was discussed. He stated that the authorities here have been so preoccupied with other pressing matters that they have had to neglect taking steps to remedy the serious economic situation that has arisen but now that “Chiang Kai-shek has been definitely disposed of as a factor in Kuomintang Party affairs” the Government here will devote itself to restoring confidence and reestablishing undisturbed business intercourse and therefore make it possible for foreigners to remain. He first inquired why there had been such substantial increase in American naval strength here, and I said that foreign lives and property at Hankow had become so insecure and there was such a complete absence of even the ordinary protection generally afforded by the Chinese authorities that it was necessary for the protection of American life and property to augment our forces. He said that he had intended issuing a public statement on the means to be adopted to afford protection to foreign business but that the arrival of additional naval forces made it difficult for him to speak for fear it might be interpreted as a weakening on his part out of fear of foreign gunboats. I told him that it was imperative that steps be taken immediately to remedy the present chaotic state of affairs else practically every American businessman would be out of the port within a week or ten days; that three American businessmen had informed me yesterday that they had ceased doing business because of the money situation. Numerous specific cases were cited showing the utter futility of continuing indefinitely under present conditions and concrete instances were given where he might today solve some pressing problems now facing American businessmen. He asked that a group of American businessmen come to see him at once concerning their difficulties so that he might tell them what he proposes to do to relieve them. I told him that the case was very clearly and emphatically put up to him by American businessmen last January and that all the satisfaction that was obtained was an evasive acknowledgment of the letter two months later and that every businessman in the port was dismayed at his indifference to so important a question. I told him I would convey his request to American businessmen.
With Chiang, Chang Tso-lin on the north, Yang Sen on the west and Canton definitely aligned against the Hankow Government and [Page 113] the local financial and business situation paralyzed, Ch’en is finding himself in a very uncomfortable position and it seems on his part essential to use the foreigner to help bolster up the Nationals’ case. Aside from a more reserved attitude than he generally displays, I was impressed with his enmity for Chiang Kai-shek and his evident dissatisfaction with the recent turn of events here. Legation informed.