893.512/1428: Telegram
The Counselor of Embassy in China (Lockhart) to the Secretary of State
[Received October 1—9:18 a.m.]
19. The Consul at Swatow reports by mail under date of September 28 that six Japanese destroyers commanded by Rear Admiral Shimamura and one light cruiser have been stationed at Swatow since September 10 except for a brief visit of the cruiser to Hong Kong. He states that the most plausible explanation for the presence of these vessels is difficulties arising from the refusal of Japanese merchants to pay provincial tax on rice which they have imported and from the failure of the Chinese authorities to apprehend certain Chinese wholesalers who have absconded with proceeds obtained from the sale of this rice.
2. The Consul further reports that there are vague but persistent rumors which he is so far unable to confirm to the effect that the recent presence of these vessels is to support possible Japanese demands for a concession at Swatow.