393.11/506: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received March 27—1:55 p.m.]
Situation here continues extremely tense. Mass meetings are being held by Chinese today in area near French Concession. Nationalist troops are patrolling streets in Chinese city and guarding all outlets from Chinese [city] to French Concession. French consul general assured me last evening no processions will be allowed to enter and if they break in they will be repulsed by firm action. All barricades between foreign settlements and Chinese areas are closed today; also barricades between French and International Settlements. Foreign residents of French Concession, where majority of [Page 94] Americans reside, are dissatisfied with arrangements made in that area for protection, the French forces numbering only 2,400 including Annamites. British consul general and I today called on French consul general and urged him to ask for a reserve support from the British and American forces in International Settlement until his French reenforcements arrive. He will consult French Admiral and send us word tonight. My action was taken after consultation with Admiral Williams and General Butler. American marines in reserve will be available on brief notice. Reports indicate continued presence of so-called labor corps in considerable numbers in Chinese areas. They are men of loafer type and many are armed. Inflammatory literature is beginning to appear on streets in native city, and faithful Chinese report agitation against foreign settlements. General Labor Union demanded that Settlement authorities remove barricade defenses around Settlement by 4:30 this afternoon or the general strike will be resumed. Although Chiang Kai-shek is reported to have declared that he would maintain order and there would be no attack on the Settlements, it remains an open question whether he can handle the situation. The Nanking incident83 shows clearly that radical tendencies have permeated the Nationalist military forces. I am satisfied that Chiang Kai-shek can only maintain the situation here by the use of military force against the radicals and it is very doubtful whether he has a sufficient or loyal force for that purpose and will resort to serious firm action to control the situation. Refugees from Nanking expected tonight and tomorrow. Attempts continue to reach merchant seamen at isolated river stations by destroyers. Some have been evacuated. Americans from a number of interior stations continue to filter in; so far they have not been molested.