394.115 Panay/248

The Second Secretary of Embassy in China ( Atcheson ) to the Secretary of State 22

Sir: I have the honor to refer to Shanghai’s telegram No. 1174, December 17, 6 p.m., containing my preliminary report on the bombing of the U. S. S. Panay, December 12, 1937.

As reported in my telegram No. 1018, December 8, 10 p.m., the remaining Embassy personnel at Nanking boarded the U. S. S. Panay, then lying off The Bund at Hsiakuan, at 9:30 p.m., December eighth. The next morning Secretary Paxton,22a Captain Roberts22b and I returned to the Embassy premises, but, at the urgent request of the Chinese military authorities, who stated that the city gate might close at any moment, went back to the Panay at three o’clock.

As reported in my No. 1024, December 9, 4 p.m., the Pukow waterfront was heavily bombed just after we returned to the Panay, bombs [Page 533] fell in the river near us, and Lieutenant Commander J. J. Hughes, U. S. N., commanding, decided to move the Panay up river about two miles to San Chia Ho, off the Asiatic Petroleum Company’s installation, whence American refugees from inside the city could proceed if they decided to join us. H. M. S. Scarab and H. M. S. Cricket were then at San Chia Ho and notified us that at five in the afternoon they would move up river about half a mile in order to be near the Jardine-Matheson hulk on which a large number of British and other foreigners had taken refuge. On December eleventh (my No. 1033, December 11, 1 a.m.) shells were reported to have fallen in the neighborhood of Hsiakuan railroad station and we anticipated that an advance by the firing batteries and deviation of the fire might compel the Panay to move farther up river, and Americans in the city were so informed. At two-forty-five that afternoon (my No. 1035, December 11, 5 p.m.) shells began falling on the near (south) shore not far up river from the Panay. Reluctant to leave San Chia Ho, and the possibility of further contact with those Americans who chose to remain in Nanking (although telephone communication was broken), the Panay delayed moving until shells were falling in the water ahead of the vessel and on the right (south) bank of the Yangtze. She then proceeded up river about twelve miles from Nanking to mileage 208 above Woosung.

As in the case of previous moves of the Panay, by the telegram last referred to I requested the Consul General at Shanghai to inform the Japanese Embassy of our position with the request that appropriate instructions be issued to the Japanese forces, including the air force, since Japanese bombing planes had flown daily over the Panay at San Chia Ho, as well as over the ship when it was at its former Hsiakuan anchorage.

As reported in my No. 1037, December 11, 7 p.m., some of the shells fell close to the Jardine-Matheson hulk then anchored about half a mile above the Panay and near H. M. S. Scarab and H. M. S. Cricket. One reportedly fell within fifty feet of the British passenger steamer Whangpoo. Some fell on both sides of the Standard-Vacuum Oil Company’s S. S. Meiping and near other merchant vessels, including the British merchant launch Woo Kuang on which one Chinese was wounded by shrapnel. As these vessels and the Panay moved up river the firing batteries changed their direction of fire, or extended it, for the shells appeared to follow for at least two miles the line of ships under way and fell continuously in the water before us, all off the port bow as if the ships were accompanied by an artillery barrage.

As stated in my No. 1037, Colonel Lovat-Fraser, British Military Attaché, and Dr. Rosen, Secretary of the German Embassy, who were on one of the British vessels, said that in their opinion there was no question that the batteries responsible were Japanese and that they deliberately fired on the ships, continuing their attempts to hit the [Page 534] vessels as the latter moved up river to get out of range. This was also the independent opinion of the officers and American passengers on the Meiping, and several other passengers endangered by the shelling. At that time, as reported in the telegram under reference, the opinion of Captain F. N. Roberts, U. S. A., Assistant Military Attaché, was that the shells were fired by Chinese batteries in or near Nanking South City searching Japanese positions on the river bank.

I was then inclined to agree but in view of the subsequent experience of H. M. S. Ladybird at Wuhu I have changed this opinion, although Captain Roberts adheres to his original report. Admiral Holt of the British Navy informed me that after the shelling of H. M. S. Ladybird at Wuhu about December twelfth (the vessel was hit seven times by shells some of which were six inch) the Japanese Commander on shore informed him that he, the Japanese Commander, had received a blanket order to destroy all shipping. Seemingly the only possible conclusion, therefore, is that our ships were fired at by Japanese batteries pursuant to this blanket order.

At nine o’clock on the morning of December twelfth shell fire again caused the Panay to move farther up stream. About an hour later a Japanese military unit on the north shore signalled the Panay, which stopped, and a motor boat with a machine gun mounted in the bow and carrying about twenty Japanese soldiers, all armed, put out and came to the starboard ladder. Two Japanese officers, accompanied by four soldiers, came aboard and after climbing to the deck by the ladder the four soldiers with fixed bayonets took posts at the gangway. I followed Commander Hughes to the ladder to talk with the Japanese officers, the senior of whom gave his name as Lieutenant M. Shigeru. They spoke very little English but questioned us as to our purpose in proceeding up river and Commander Hughes told them it was to escape shell fire. Commander Hughes and I gave them our cards and they invited Commander Hughes ashore but he declined. We shook hands and they departed. The action of the soldiers in fixing their bayonets after boarding the Panay we put down to ignorance because while the officers were not very friendly they did not on the other hand seem unfriendly.

At eleven o’clock the Panay anchored twenty-seven miles above Nanking at mileage 221 above Woosung. The Standard Oil tankers followed us and anchored near by: the S. S. Meiping about 500 feet ahead; the S. S. Meiping about 300 feet from the Meihsia on the latter’s starboard quarter; and the S. S. Meian about 700 feet directly behind the Panay. All vessels were flying American flags and the colors were painted horizontally on the awnings and superstructures. By my priority radiogram No. 1040 of December 12, 11 a.m., I requested the Consul General at Shanghai to inform the Japanese Embassy of the new position of the Panay and the American [Page 535] merchant vessels in question and to ask that appropriate instructions be issued to the Japanese forces. I requested that the Consul General, in communicating with the Japanese Embassy, add that circumstances might again cause the Panay to move either up or down river and that the vessel expected to return down river to Nanking as soon as feasible in order to reestablish communication with the Americans who remained in Nanking and in order that the Embassy might as soon as practicable resume its functions ashore. Mr. Gauss received this priority message about 12:15 p.m., at once telephoned to the Japanese Consul General, and sent a written communication to the Japanese Consul General which was received by the latter before one p.m.

The U. S. S. Panay and the Standard Oil vessels were bombed by Japanese planes shortly after 1:30 p.m., December 12th. The weather was clear, sunny and still. The bombing was by at least six planes believed to have been light bombers using bombs estimated to have been about 100 pounds in weight. Before the bombing and when the planes were first heard approaching, Captain Roberts proceeded to the boat deck to observe them. He watched them through field glasses and identified them by their markings as Japanese, as did also Mr. Malcolm MacDonald (British, correspondent of the London Times) who saw them from the sick bay, which was being used as a press room. According to Mr. Norman Alley, Universal News Reel camera man who took motion pictures of the planes while they were dive-bombing the Panay, and who was also on the boat deck, the bombing was effected by nine planes. The general consensus of opinion among the ship’s company was that there were six planes. The bombing planes power dived at the Panay in succession and, according to Captain Roberts and others who saw them, the bombs were dropped from an altitude of not more than 1,000 feet. Approximately 20 bombs were dropped at the Panay, with four or five direct hits on the naval vessel and two or three hits on the S. S. Meiping. Most of the bombs fell at the port side forward of the Panay, with at least one on the starboard side. The first bomb hit the port bow, disabling the forward three-inch gun, giving the ship a terrific jolt and causing her to begin to list to starboard. One bomb fell amidships on the port side. I personally did not see the planes. I was in my quarters, the forward starboard cabin on the main deck, working on Embassy business, when I heard the first power dive, followed at once by the first bomb which fell on the other side of the ship. Secretary Paxton and Clerk Gassie were working in the ship’s office below the main port deck when the bombing began. Mr. Paxton states that there was a severe explosion on the port side of the ship which threw him, Mr. Gassie, Seaman W. P. Lander and Yeoman J. P. Weber completely across [Page 536] the room onto a pile of debris, filing cases and other heavy objects, and that water began to leak in through the hull. Some heavy object, presumably the desk of the office, which was hurled against them, broke Mr. Gassie’s leg and injured Mr. Paxton’s knee. Mr. Paxton and the Navy personnel helped Mr. Gassie up the ladder and placed him in the doorway of the forward lavatory opening on to the forward main passage way between the two sides of the ship.

During the bombing the Japanese planes machine-gunned the ship as they power dived. Commander Hughes, who was on the bridge, gave the call to general quarters and three (possibly four) of the mounted machine-guns on the boat deck were manned by their crews. Lieutenant A. F. Anders, U. S. N., Executive Officer of the Panay, went to the boat deck and himself attempted to man one machinegun and while doing so was wounded in both hands. The after three-inch gun was not uncovered or manned. Failing in his attempt to man the machine-gun Lieutenant Anders proceeded to the bridge, where he found Commander Hughes with a broken leg. Lieutenant Anders was wounded in the throat by shrapnel while on the bridge at this time. Lieutenant Anders, and Chief Quartermaster Lang who was wounded on the chin, in the right arm and one leg, carried the Commander to the forward galley of the main deck. Meanwhile I had left my cabin, just as the inner steel wall was blown in, in an effort to learn what was happening to the others and met Mr. Paxton, who was covered with debris, and Captain Roberts, who had been knocked flat by the concussion of a bomb and again knocked down by splattering steel fragments caused by machine-gun fire from a plane. Bombs were still falling and at each power dive we took cover in the center of the passage way and huddled together until after the explosions. I found Mr. Gassie in the lavatory and asked some sailors to help him, and then found Commander Hughes in the galley and heard give him [him give] the order to abandon ship. This was about 2:05 p.m. I then called a sailor and we carried Commander Hughes along the starboard deck aft and placed him in a small boat, which some members of the party had lowered, and sent him ashore. This boat was machine-gunned from the air and Machinist’s Mate, second class, A. Kozak, was wounded during the journey ashore. Four bullet holes were later found in this boat. Meanwhile the engine room watch had opened the steam safety valves in order to lessen the chances of a boiler explosion, and while this was the proper thing to do, one result was that it was no longer possible to maneuver the ship. The power had been turned off’ immediately after the first bomb hit the Panay and it was therefore impossible to send an SOS. According to one member of the crew the first bomb injured the batteries of the radio apparatus and this put the radio out of commission. Badly wounded and unable to [Page 537] speak as he was, Lieutenant Anders took charge of the evacuation of the ship, wrote his orders on pieces of paper or bulkheads and kept to his feet until his task was accomplished.

The Meihsia came to our assistance but we waved her away as we knew she was filled with gasoline.

On the third trip of the ship’s boats, the last members of the crew and passengers reached shore. These two boats put off from the Panay practically simultaneously, and in one was Lieutenant Anders, the executive officer, and Ensign Biwerse22c was in the other. Because the outboard motor of the smaller sampan broke down, this boat containing Lieutenant Anders was actually the last to reach shore. As soon as a check had been made, the larger sampan returned to the ship for water and other needed supplies.

After the Panay had been abandoned and was settling by the starboard bow, two Japanese armed patrol boats came down river, machine-gunned the Panay with several bursts, went around the stern, and several Japanese soldiers boarded the vessel on the port side, remained for about five minutes and then departed. The Panay’s flags were flying in plain view at this, as at all times, until the vessel sank. The machine-gun bursts fired by these patrol boats were apparently directed at the bridge. I personally did not see these patrol boats as I was helping to carry Commander Hughes into the marsh reeds. I heard the motors of the boats and the machinegun fire. Captain Roberts, who was closer to the water’s edge, saw them, as did a number of the members of our party, including Mr. MacDonald and Mr. Roy Squires. In fact, the patrol boats appeared and began firing while the boat which had gone back to the ship for supplies was still off shore. Boatswain’s Mate Ernest R. Mahlmann and Machinist’s Mate G. L. Weimer were in this small boat of ours at the time and stated that they heard bullets whistling overhead.

The Japanese patrol boats started up river again but turned back toward our landing point; however, we were all now hidden and they departed.

Meanwhile the burning Meiping headed first toward the north shore but turned toward the south bank and eventually was brought alongside a pontoon located there. The Meihsia followed the Meiping. The Meian remained along the north shore farther down stream. According to the Americans on the Meiping and Meihsia, when the Meiping came to the south bank about 100 Japanese soldiers appeared and ordered the ship’s company ashore. These soldiers apparently had no contact with the patrol boats which had machine-gunned the Panay; they gave some first aid treatment to Mr. Pickering of the Standard-Vacuum Oil Company and Mr. Vines of the Yee Tsoong Tobacco Distributors, Ltd., and after questioning they [Page 538] ordered the ship’s company aboard again. Almost immediately after the company had returned on board, six planes appeared over the river and again bombed both the Meiping and the Meihsia from low altitudes. Large fires broke out on the vessels and the explosions of gasoline drums on the Meiping could be heard for hours afterwards.

While we were searching for a way out of the marsh in which we were hidden a fleet of three Japanese bombers proceeding down river flew over us and one Japanese plane circled above the marsh reeds where we had concealed our wounded and ourselves. The actions of this plane and the previous action of the Japanese army patrol boats, in connection with the incredible fact of the bombing of the Panay, gave us every reason to believe that the Japanese were searching for us to destroy the witnesses to the bombing.

During the period we were in the marsh Commander Hughes, after consultation with me and with my approval, asked Captain Roberts to take charge of the party since all three most senior naval officers were wounded and the remaining naval officer, Ensign Biwerse, was badly shell-shocked, having had his trousers blown away by the explosion of the bomb. From then on the responsibility for our actions fell chiefly to Captain Roberts and me, in consultation with Commander Hughes who, in spite of his painful wound, remained calm and collected and bore himself with admirable fortitude.

The Panay sank with colors flying at 3:54 p.m.

We sent Secretary Paxton inland in an attempt to get out a message and make known what had occurred. We did not know at that time that Mr. Paxton was wounded both in one arm and one knee. With complete selflessness he did not tell us of his wounds but went off alone into territory that was under attack on his important mission.

After darkness came we made our way in relays to some farm houses about one mile up river and a little in-shore and there obtained some food and temporary shelter. Several police from Hohsien arrived and told us they came to help us; also one or two soldiers came and assisted us in finding coolies to act as stretcher bearers. We had only two stretchers from the ship, and there were thirteen men so badly wounded they had to be carried. We obtained some bamboo beds and improvised stretchers out of boards from pig pens and from doors of the farm houses, and began the journey to Hohsien, a point five miles away and three miles inland. At the gate of Hohsien Mr. Malcolm MacDonald (correspondent of the London Times) and I, who were with the advance party carrying Commander Hughes, were met by a Chinese employee of the Standard-Vacuum Oil Company from Nanking, Mr. T. H. Chen, who placed himself at our disposal and rendered us great assistance. Just inside the gate the Magistrate’s secretary came to us and told us [Page 539] that quarters had been arranged for our wounded and ourselves, and Mr. MacDonald and I proceeded, to the Magistrate’s yamen while the wounded were taken to their quarters, under the direction of Captain Roberts who stayed at the small hospital helping to care for the wounded, as Dr. Grazier,22d U. S. N., the Panay surgeon, who was with a later section of our party, did not reach Hohsien until 4:15 a.m. The Magistrate, Mr. Wang Tien-chih, an American returned student, did everything possible for us and while we were in Hohsien devoted his entire time to our needs and wishes. He told us that his city had already been attacked three times by Japanese patrols and we decided that as soon as we could give the wounded some care and rest and make arrangements to do so we would proceed on inland under cover of the darkness of the next night. The wisdom of our decision seemed to be subsequently confirmed by the appearance on December 13th of Japanese planes which circled over Hohsien. One of these planes flew at an altitude of not more than 400 feet over the little thatched-roof hospital where we had our wounded concealed. Apparently the airmen did not see any of us; they did not shoot; one machine-gun bullet could have set fire to the thatch and burned up the helpless wounded. The appearance of this plane had a most unfortunate effect upon the shell-shocked and wounded men.

On the morning of December 13th I managed at about 8:30 to get a clear telephone connection with Dr. Taylor, an American medical missionary at Anking, and he relayed our news to the Ambassador a little later. I managed also to telephone to Dr. C. A. Burch, an American missionary at Luchowfu (Hofei) and he also relayed a message to the Ambassador.

Mr. Sandro Sandri, an Italian journalist who was a guest on the Panay, and Storekeeper Charles Ensminger died of their wounds at Hohsien. In the afternoon of December 13th the Magistrate informed me that a group of about 1000 Japanese soldiers had crossed the river from the south bank and landed on the north bank near the point where we ourselves had landed the afternoon before and were only six miles away. He and other Chinese at Hohsien were plainly concerned at our presence in their city and feared that the Japanese would attack the place in an attempt to capture our party. The Magistrate kindly arranged for the hire of six small junks and after dark we loaded our wounded on these vessels and proceeded up a nearby creek twenty miles to the town of Hanshan, a journey which took ten hours. We arrived at the point on the creek nearest to Hanshan at 6:00 a.m., December 14th. Captain Roberts and I walked to the town about two miles distant and persuaded the soldiers at the gate to admit us and to take us to the Magistrate’s [Page 540] yamen. We found in the Magistrate, Mr. Kiu Jui-chuan, as kind and helpful a friend as was Magistrate Wang of Hohsien. Mr. Kiu arranged for quarters and food for the wounded and ourselves and did everything for us within his power.

On the morning of December 14th, while we were trying to telephone to Luchowfu for motor busses or trucks with which to continue on to that place, 130 miles distant, I received a telephone message from Admiral Holt of the British Navy, then at Hohsien, that the situation was clear and that arrangements had been made for our passage to Shanghai under Japanese escort. At about noon Dr. Burch arrived from Luchowfu with medical supplies, then drove 30 miles to Chaohsien and brought Mr. Paxton from that place back to Hohsien. We left Hohsien [Hanshan] at 2:15 p.m., December 14th, by junk and after 8:00 p.m., reached Hohsien where Admiral Holt and Magistrate Wang had arranged for the transportation of our wounded to, and accommodations for the party on, H. M. S. Bee, H. M. S. Ladybird and U. S. S. Oahu.

The Panay is sunk in about 30 fathoms. The Meiping and Meihsia and their cargoes are total losses. A statement compiled by the Standard-Vacuum Oil Company and containing an estimate of its losses as a result of the bombing is enclosed.

A statement of the casualties is also enclosed. The number of foreign dead has now reached four.

In a radiogram which I addressed to the Ambassador from the U. S. S. Oahu on December 15th I had the honor to state that great credit for our escape from shore inland was due to Captain F. N. Roberts, U. S. A., Assistant Military Attaché. His courage, leadership and selflessness in refusing to be beaten can be described only in terms of highest praise.

I wish also to note in this record the courage and resourceful conduct of Secretary Paxton. In his lonely and arduous attempt to get out a message which would let be known what had happened and which would prevent a further attack upon us, which we had strong evidence to believe was contemplated, Mr. Paxton proceeded as far as Chaohsien, thirty miles beyond Hanshan, fifty miles from the river.

The following instances of gallant conduct on the part of naval personnel came under Captain Roberts’ and my observation:

Lieutenant Commander J. J. Hughes sustained a broken leg and shock when the first bomb exploded, but though in great pain courageously continued to give directions and orders until the ship had to be abandoned. Ashore, he preserved the same calmness and fortitude.

Lieutenant A. F. Anders was shot through the hand, and in the throat so that he could not speak, but wrote instructions on the white [Page 541] paint work, and refused to be put ashore till the last. He had lost a great deal of blood and was very weak, but insisted that the other wounded of the party be given medical attention before he himself received it, and during the time ashore he was continuously concerned for the safety and welfare of the men.

Dr. Grazier, U. S. N., with courage and calmness under fire and at all times, devoted himself untiringly to the care of the wounded.

Chief Quartermaster John H. Lang was painfully wounded in the chin, in the right arm, and right leg, but refused to become a stretcher case in view of the requirements of the other wounded, and with great courage and fortitude kept on his feet the entire way.

Coxswain M. D. Eider, after helping carry a wounded comrade six miles, voluntarily remained the rest of the night at the improvised hospital to assist in caring for the wounded.

Chief Boatswain’s Mate Ernest R. Mahlmann and Machinist’s Mate G. L. Weimers courageously returned to the ship for additional supplies although hostile airplanes were expected to return at any moment. While returning to shore these men narrowly escaped being fired on by a Japanese river patrol.

Captain Roberts and Secretary Paxton collaborated in the preparation of this report and have given it their approval. It is respectfully requested that a copy be furnished the War Department.

Respectfully yours,

George Atcheson, Jr.
  1. None of the correspondence mentioned in this despatch is printed.
  2. John Hall Paxton, Second Secretary of Embassy in China.
  3. Capt. Frank N. Roberts, Assistant Military Attaché in China.
  4. Denis H. Biwerse.
  5. Lt. Clark G. Grazier.