693.002/663: Telegram
The Consul General at Shanghai (Lockhart) to the Secretary of State
[Received May 24—10:40 a.m.]
714. Hankow Embassy’s 273 [263], May 23, noon. Inspector General of Customs informed me that he recently despatched a telegram to the Minister of Finance in which he stated that it is becoming increasingly difficult in existing circumstances to continue to withhold payment of Japanese portion of Boxer indemnity outstanding since September last and deposited in Hong Kong and Shanghai bank and that it may become necessary to ease the tension and obviate actual deadlock to consider question of releasing these deposits at an early date. The Inspector General has informed the British Ambassador at Shanghai in writing that: “I have repeatedly alluded to the impropriety of not liquidating the terms of the protocol, and resumption of the payment of Japan’s share of the indemnity month by month as it falls due and if this view is supported I suggest that the representatives of the interested powers in Hankow should be advised accordingly.” I shall keep the Department informed of further developments in this matter.
Repeated to Hankow, Peiping and Tokyo.