393.115 Hunt Company, William/37: Telegram
The Consul General at Shanghai (Lockhart) to the Secretary of State
[Received June 28—1 p.m.]
918. 1. The substance of Hankow’s 316, June 25, 3 p.m. to the Department was communicated orally to Hunt and he has also been informed of the hoisting of the American flag on the China Merchants properties described in Hankow’s 318, June 27, 11 a.m. to the Department.
2. In a conversation with Hunt today he stated that William Hunt and Company have instructed their representative that under no conditions are the movements of the China Merchants vessels to obstruct or interfere with the free movement of the United States ship Monocacy in proceeding up or down river. Hunt stated that McDonnell91 has returned from Hong Kong where a conference was held in which William Hunt and Company insisted upon the full delivery of the China Merchants property to William Hunt and Company and [China] Merchants, with the approval of the Chinese Government, have agreed to the delivery of same without further obstruction commencing with the delivery of the property at Kiukiang, Hankow and other river ports. Hunt also states that at other ports delivery has been completed. William Hunt and Company respectfully request that their taking over of the properties will not be interfered with or impaired by United States Government agencies and that the question of implementing the Department’s decision will remain in abeyance pending the outcome of McDonnell’s conference with Department officials (see my telegram No. 874, June 20, 8 p.m. and 894, June 24, 11 a.m.92). William Hunt and Company feel that the divulgence of the Department’s decision officially or privately will severely damage them and most probably result in the Chinese when retreating destroying wharf property. They insist that they have been strictly ethical in this matter and they wish emphatically to assure the Department that the documents were not negotiated to give American protection to Chinese Government property. Hunt has repeatedly assured me that he was attempting to divest Hunt and Company of the vessels and lighters at Hankow and Kiukiang as distinguished from the wharves, godowns and equipment thereof and now confirms that he does not intend to take the vessels and lighters over but to make the illegal use of them by the Chinese Government resulting in their utter deterioration a matter of a claim against the Chinese [Page 382] Government. Hunt states that inasmuch as heavy financing is being effected at this time in view of meeting loan guarantees, he hopes for the Department’s sympathetic cooperation and assistance.
Repeated to Hankow.