The Consul General at Tientsin (Lockhart) to the Secretary of State
[Received June 30—6 a.m.]
Chinese authorities confirm negotiations are in progress here looking to disposal of Li Chi-chun’s troops in Tangshan area and assumption of police control over that area under authority of General Yu Hsueh-chung, Chairman of Hopei Provincial Government, and now concurrently Mayor of Tientsin. An official expressed confidence today that an amicable adjustment would be arranged within a week if no new obstacles arise and that rail traffic to Chinwangtao will be restored immediately thereafter. Successful outcome of negotiations is promising but by no means certain.