The Consul General at Shanghai ( Lockhart ) to the Secretary of State
[Received April 8—9:11 a.m.]
Reference Chungking’s April 4, 6 p.m., in regard to International Settlement. With reference to Chinese Government’s first condition, Yu Ya-ching and Chen T’ing-jui secretly left Shanghai recently, and William Gockson is understood to be preparing to leave or may have already left. Of the five Chinese Councilors recently nominated by the Chinese Ratepayers Association, there thus will remain in Shanghai only L. T. Yuan and Yulin Hsi. In view of the above it appears to be impossible to fulfill condition one. It might be feasible, however, for the Chinese Ratepayers Association to select two new Councilors and thus make up the desired number.
It appears to me that quick action by the Chinese Ratepayers Association in naming their Councilors will obviate the difficulties which will almost certainly arise if there is delay or indecision in this matter. It is suggested that the foregoing situation regarding Chinese Councilors be brought to the attention of the Chinese authorities who may desire to take steps to persuade the Chinese Ratepayers Association to select four Chinese Councilors with the least possible delay. My British colleague and I do not feel that we would be warranted in making any suggestions to the Chinese Ratepayers Association.
Sent to the Department [Embassy?], Chungking, repeated to the Department and Peiping. Code text by air mail to Tokyo.