793.94/3963: Telegram
The Consul General at Shanghai (Cunningham) to the Secretary of State
[Received February 5—6:45 a.m.]
2. Following remarks were made to Josselyn February 5th by Jun Ke Choy, former Shanghai Commissioner of Finance and now liaison officer between Mayor’s office and British and American Consulates:
Choy stated that all Chinese commanders together with other thinking Chinese knew that present Shanghai conflict hopelessly one-sided [Page 217] and that Chinese had no chance whatever to win; that in spite of this knowledge Chinese commanders were determined to resist (1st) because a retreat would lower the morale of the whole country and (2d) they were resisting in order that the powers might have time in which to mobilize world opinion and to bring neutral forces to Shanghai both of which he thought were factors favorable to China. He said that if Japan occupied Chapei she would not give it up and with the Japanese in possession there the entire situation in Yangtze Valley would be altered for the powers.
Repeated to the Legation, Nanking and Tokyo for information.