The Consul General at Shanghai ( Lockhart ) to the Secretary of State
[Received 6:40 p.m.]
1114. My 1074, August 13, 1 p.m. I inquired of the Inspector General on August 15 whether he had personally interviewed the Japanese Consul General at Shanghai57 concerning the question of the discontinuance of the Inspectorate allowance and the appointment of a Japanese Commissioner at Shanghai. Sir Frederick replied that he had called upon the Japanese Consul General on two occasions lately in connection with this matter and that the latter had informed him that he regretted that he was not in a position to modify his attitude. The Inspector General sent Kishimoto, chief secretary, to see the Japanese Consul General on August 14 but the latter informed him that he could not refer to Tokyo any proposal which has for its object the relaxation of the stand which the Japanese authorities have taken vis-à-vis the Inspectorate General in connection with the question of the appointment of a Japanese Commissioner at Shanghai. He added, however, that the Inspector General’s request would be considered if he could promise that the contract of the present Commissioner, who is a British subject,58 would not be extended (the contract expires in October). Kishimoto, under instructions from the Inspector General, requested that the allowances for the expenses of the Inspectorate be continued until the end of October 1941 and that an increase of about half a million dollars in the monthly expenses proposed by Shanghai customs be agreed to in order that high cost of living allowances to the Chinese staff and [an] increase of salary [for] foreign employees might be granted. These proposals were rejected and the situation vis-à-vis the Inspectorate General and the appointment of a Commissioner stands as reported in the reference telegram.
Sent to the Department, repeated to Chungking, Peiping. Code text by airmail to Tokyo.