893.512/489: Telegram
The Consul General at Hankow (Lockhart) to the Secretary of State
[Received 7:37 p.m.]
Eugene Chen, Minister for Foreign Affairs, stated to me today that he has been advised from an absolutely reliable source that the [Page 930] Secretary of State is preparing a statement to be made public on the subject of the two and a half percent surtaxes. Chen stated that in view of the fact that he will telegraph an important announcement to Washington within the next 48 hours it is his view that the American Government should await this announcement of the new government before making public the statement. Although making no direct request, Chen is extremely anxious that the Department’s statement be held in abeyance until his announcement is received at Washington and made public there.
The British statement on the two and a half percent surtaxes has made a distinctly unfavorable impression on the new government, the main objection apparently being that the surtaxes will supply millions of dollars to the Northern military forces, especially through the Shanghai and Tientsin customs collections. Chen stated that it merely means prolonging of the struggle and much further bloodshed.