893.00/8415: Telegram

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

Quiet is being maintained inside Settlement and foreign residence area to the west. Disorders continued last night and today in Chinese territory adjoining Settlement on the north where armed laborers, agitators, students, and others have conducted something of a reign of terror, looting, burning, and firing arms. Pi Shu-cheng’s forces shot down a number of them yesterday afternoon, but last night he apparently abandoned the situation, although isolated [Page 90] detachments Northern troops have continued firing, adding to the general confusion and disorder. Changchow, Wusih, and Soochow are reported in Nationalist hands. Northern troops from the latter place reported moving to join their comrades here. Nationalist troops are now moving to the area north of Settlement and it is hoped they will quiet the situation. Evacuation of foreigners from that area going on so far as possible but some of them are isolated, including Americans. Attempts being made to reach them without employing military force. Foreign troops have occasionally been fired upon by armed agitators. One Indian soldier killed, several British soldiers slightly wounded.

Gauss