893.00/8421: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received March 23—5:18 p.m.]
Immediate situation has been somewhat relieved by the surrender of approximately 4,000 Northern soldiers to foreign forces. Some detachments of these troops closely pursued by guerrillas rushed the Settlement [sections?] held by British and Italian forces, opening fire; foreign troops returned the fire whereupon the detachments surrendered. Estimated 50 Northern soldiers killed and 100 wounded in these actions. Practically all foreigners in northern area, including Americans, have been withdrawn under foreign police escort.
General strike has spread; 155,000 industrial and public utility workers on strike including postal and customs employees.
Nationalist General Pai Tsung-hsi80 arrived yesterday and has issued series of proclamations accepting responsibility maintenance public order, declaring Government will undertake necessary negotiations on unequal treaties and that undesirable characters will not be allowed to interfere in such governmental functions and that there is no intention recover China’s sovereign rights by military force or measures endangering foreign life and property.
There is no evidence that the Nationalist forces have yet dispossessed the guerrillas, labor agitators and students of their control of the situation; sniping continues; laborers continue to be intimidated; the strike is spreading; the Nationalist forces evidently have not placed themselves in contact with the moderate Kuomintang leaders here; there is considerable uncertainty as to the attitude of the general labor union and some evidence of intention to continue radical methods. In short, the situation closely approximates that which [Page 91] existed at Hankow and other places and there is at present no justification for placing confidence in the Nationalist declarations of good intentions. With the forces they have at hand they could readily suppress all disorders in the disturbed areas and maintain complete peace and security. So far they have failed to do so. Thanks to the police volunteers and large foreign forces, quiet and order are being maintained within the Settlement and western area. Rains today have in some measure improved the situation.
- Nationalist Defense Commissioner of Shanghai from this date.↩