793.94/3915: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received 6:47 a.m.]
Refugees continued to pour into the Settlement all day. The Hongkew and Yangtzepoo districts are being rapidly evacuated. Despite the fact that a truce was supposed to prevail, sporadic rifle and machine-gun fire continued throughout the day. At 12 o’clock the [Hongkew] and Yangtzepoo districts were closed. Aeroplanes began to reconnoitre Chinese positions at 2:10 p.m. without any cause, firing occurred between heavy guns on the Japanese ships and fieldpieces [Page 190] ashore near the rifle butts in an attempt to smash a Chinese battery located near Markham Road. During the last 2 days no effort has been made by police to patrol sections of Settlement under rifle and machine-gun fire from the opposing sides. For the first time since Japanese forces seized control of the Chapei and neighboring districts, Ronins took over command of the area usually patrolled by the Municipal Council police from Hongkew station. These armed independent civilian Japanese patrols continued to hold up pedestrians in the Hongkew district. These irregulars, as well as the Japanese marines are still treating the terrorized civilians practically with little or no consideration, bayoneting or shooting with little compunction. There is no doubt that the Japanese are being subject to almost continuous attack by snipers, a gun nest on the top of a building on Seward Road having been smashed by the Japanese last night. It is assumed that there are no less than 60,000 refugees in the Settlement.
The Japanese have no less than 10 headquarters located throughout the Hongkew and Yangtzepoo districts. The Japanese naval marines maintain no less than 38 machine guns.
The 19th Route Army of some three divisions, numbering 30,000 strong, are scattered between Shanghai and Soochow. The Chinese residents of Shanghai are showing a good deal of patriotism in coming to the assistance of the Chinese Army in their defense against Japanese invaders. Special patriotic societies contributing money and food supplies to assist the Chinese soldiers. An anti-Japanese “dare to die” corps has been formed to support the 19th Route Army. Various anti-Japanese patriotic societies are being formed. Some of these are now functioning for defense purposes. These societies are issuing circulars exhorting the people to come to the defense of the country.
All Chinese banks remained closed but were expected to be opened on Wednesday. [Apparent omission] Chinese bankers, the breaking of today’s truce may influence them to remain closed. There is a great demand for silver and most of the Chinese bank notes are discounted anywhere from 10 to 20 percent.
Although they declare in [that?] the Japanese mills are out of work, so far no major labor disturbances occurred.
As a result of the fighting Chapei, all hotels and lodging houses in the Settlement and French Concession are packed with refugees. The increase in charges has been 100 percent.
The American Saint Luke’s Hospital in the Hongkew district was given considerable trouble by the Japanese patrols today, who insisted on entering the hospital and searching for snipers. They also prevented the hospital nurses and cooks from coming to their duties to [Page 191] the hospital from their homes nearby. This matter was subsequently adjusted by this Consulate General. Further fighting is expected.
Repeated to the Department, the Legation and Nanking.