793.94/3758h: Telegram
The Secretary of State to the Consul General at Shanghai (Cunningham)
Department understands that Commander Chinese 19th Route Army has asked Mayor to demand that Settlement authorities disarm Japanese Marines in Settlement, failing which he threatens to try to [Page 136] drive Japanese out of Settlement to ships. Also, that defense committee, including Japanese Chief of Staff of landing forces has considered situation; that Settlement authorities have asked Japanese to cease moving armed forces through Concession, to cease armed patrolling of United States sector and patrolling by armed Japanese civilians and to reduce forces around Japanese mills in northern United States sector. Also, that proposal was made to establish reserve line east and west and that it is intention of American Command, if American neutrality is jeopardized, to occupy position on that line and turn portion of sector north of that line containing Japanese mills over to Japanese.
Department has just been informed from London that there is a proposal to establish a neutral zone outside of the Settlement and that knowledge of this Government’s attitude in reference to cooperation in relation to that project is desired. If there is such a project and if you consider it practicable and approve, Department authorizes American cooperation. To this extent Department’s previous instructions are amended.
Department on basis of its understanding of these developments and arrangements, approves in principle. Department feels that every reasonable effort should be made to induce Japanese to refrain from any use of the Settlement by their regular armed force and to disarm all their regular civilians not in Settlement volunteer forces. If neutral zone is established, agreement to respect it should be secured from Japanese military authorities as well as Consul General.
Chinese authorities should be informed that any military activities on their part involving violation of defense lines of Settlement will be objected to.
Orders have been given to Admiral Taylor, Manila, to proceed with cruiser and destroyers to Shanghai. Department wishes it to be understood that this involves no threat but is a measure of precaution for ensuring safety of American lives and legitimate interests and fulfilling our responsibilities in general at Shanghai and at other exposed ports in the Yangtze and elsewhere in China.