893.102 Kulangsu/240: Telegram
The Consul at Amoy (MacVitty) to the Secretary of State
[Received August 23—9:20 p.m.]
Referring to my telegrams 75 and 85 dated July 11 [13], 6 p.m. and July 20, 6 p.m., concerning the request made of the Japanese Consul General as Senior Consul to call a ratepayers meeting. The Municipal Council reports that by the end of this year it will face a deficit of $50,000 Chinese currency which must be by increased taxation or a loan or both. The Japanese Consul General has consistently refused to call a special ratepayers meeting despite written requests of the Consuls and of the Municipal Council, and he cannot be forced to do so under article 3 of the land regulations which provides only that he may call an extraordinary meeting if requested by the Consuls or the Municipal Council. The deficit was caused by the depreciation of the Chinese currency and the increased cost of commodities caused by partial blockade of the Settlement. The Japanese Consul General in a recent letter to the Council obliquely suggested that the partial blockade was the fault of the Council. In a conversation with Benninghoff he intimated that he would call a meeting if the Japanese demands were met. The Consular Body has suggested to the Municipal Council that it call an informal ratepayers meeting on its own initiative to sanction necessary financial measures to be formally approved at the annual meeting in January.
Sent to Peiping. Repeated to Chungking. Peiping please repeat to Tokyo.