693.002/643: Telegram

The Consul General at Shanghai (Lockhart) to the Secretary of State

632. My number 624, May 6, 4 p.m. With reference to the report that the “Reformed Government” has taken over the Shanghai customs, the Japanese Consul General today informed the Secretary of the Consular Body that the Inspector General and the Commissioner of Customs had actually recognized the new situation. While I have not been able to ascertain whether the Inspector General and Commissioner has in fact recognized the new situation, such recognition would seem to be inevitable.

The Chinese staff of the customs threatened to walk out this morning. The Commissioner is understood to be endeavoring to persuade them not to do so and the staff is meeting to come to a decision on this point. It is understood that all foreign members of the staff propose to remain.

Repeated Hankow, Peiping and Tokyo.

Lockhart