893.102S/2471: Telegram

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

444. Chungking’s 141, April 17, 6 p.m. and my April 17, 3 p.m. to Chungking regarding International Settlement.

1.
Meeting on April 14 of the Chinese ratepayers remaining in Shanghai was attended by 38 Chinese ratepayers or more than sufficient to form a quorum under the provisions of the regulations governing the Chinese Ratepayers Association. This meeting, which nominated 4 people contiguously (2 Chungking and 2 Nanking) to serve on the provisional council is held by those [apparent omission] to have been entirely legal and that the action taken was legal.
2.
With reference to the telegram from Chungking, from the Chairman and Vice Chairman of the Chinese Ratepayers Association, it is understood that the Vice Chairman whose name was affixed to the telegram was not in Chungking but in Hong Kong at the time. [It is believed?] it would be better that these officers made no attempt to convene a meeting of Chinese ratepayers resident in Shanghai.
3.
As reported in my 436, April 17, 7 p.m., the foreign ratepayers yesterday signified, with but one dissenting vote, their approval of the establishment of a provisional council. It is believed that the majority of the consular representatives in Shanghai will indicate their acquiescence. Some have already done so tentatively.
4.
Council members decided last night to accept 4 members designated in the telegram from Chungking. In replying thereto [they] indicated that, in view of absence of 2 Chinese members, their places had been filled by 2 persons selected by Chinese ratepayers here.
5.
In view of the foregoing, it would appear to be inexpedient and [ill-advised] to permit the agreement to fall through because of the failure of the Chinese Government to acquiesce. My British colleague also feels strongly on this point. It is certain that the repercussions would be of a most serious nature if the provisional council is [not permitted to?] function [because of lack of Chinese acquiescence?], in which event the risk of losing control of the Settlement [Page 856] would arise. It would appear that the Chinese Government should realize that the present compromise arrangement is wholly temporary and designed to prevent any drastic action against the Settlement and that it will be in no way relinquishing its [sovereign] rights by acquiescing in, or by interposing no objection to, this arrangement even though the places of the absent Chinese councilors are filled by substitutes allegedly having Nanking affiliations.
In as much as the matter is urgent, I respectfully request authorization to inform the Senior Council that the Government of the United States acquiesces in the resolution approved yesterday by the foreign ratepayers.

Sent to the Department. Repeated to Chungking and Peiping. Code text by air mail to Tokyo.

Lockhart