793.94/4291: Telegram

The Consul General at Shanghai (Cunningham) to the Secretary of State

72. Continuing my daily report No. 64, February 17, 5 p.m.

1.
According to best information available, the situation remains quiet along both the Woosung and Chapei fronts. The Japanese Marine Headquarters, however, have complained to newspapermen that the Chinese have been firing upon their positions. It has been learned, however, that Japanese soldiers on duty at sandbag emplacements and machine-gun posts west of North Szechuan [Road] and on Paoshing Road were walking about quite openly this morning. At these points there were no signs of Chinese troops. I feel Japanese troops at these points have used every precaution against snipers and the opposing Chinese troops. Furthermore, the Japanese military forces have not come into the lines in any great numbers. They are still billeted in the Yangtzepoo district.
2.
Referring to the peace negotiations reported in paragraph 3 of my yesterday’s daily cable, it is now confirmed that a conference between Lieutenant-General Uyeda and General Tsai Ting-kai began at 9 o’clock this morning. With reference to statement that the rank and file of the 19th Route Army are determined to fight, it is rumored but not confirmed that a number of troops in Nanking insist upon coming to the assistance of the defenders of Shanghai despite the orders of their superior officers.
3.
Yesterday some 10 airplanes and parts were landed at Wayside Wharf from the Japanese naval transport and were later wheeled by Japanese soldiers to the new airfield near the Shanghai Baptist College mentioned in a previous telegram. Five torpedo boats arrived at the Japanese Wayside Wharf loaded where they stored the ordnance. It is reported that Chinese soldiers are digging trenches on the south side of Siccawei Creek beyond Siccawei observatory. Numerous shells continue to fall within the Settlement limits. With reference to paragraph 2 of my yesterday’s daily cable, the two British naval guards died last night.
4.
Reference paragraph 11 of yesterday’s daily cable, an American reported yesterday to this Consulate General that 5 of his servants had been detained by the Japanese marines. A representative of this office accompanied the American complainant to his house at 41 Kiangwan Road adjacent to the Hongkew Park. The house was found to be occupied by Japanese marines with the American flag still flying over it. Notices stating that the property in question is American are [Page 379] still posted on the residence. The house was found to be in an indescribable state of disorder, every room having been ransacked and almost everything of value stolen. There was a notice written in broken English to the effect that the Japanese marines were not responsible for the condition of the house because they found it in that state. While returning from the investigation the Vice Consul and complaining American passed a building occupied by Japanese troops where the American stated he positively identified his own automobile occupied by Japanese marines. This is only one of many similar incidents that could be reported as having happened not only to Chinese but to Americans and British as well. The question that presents itself for eventual solution is: who is going to pay for the loss and damage? A complaint has been made to the Japanese Consul General.
5.
Yesterday afternoon about 100 Chinese students and laborers paraded in Nanlee [Nanking Road?] shouting communistic slogans. On the banner leading the procession were the characters “Anti-Japanese National Salvation Army of the Masses”. One of the most significant of these handbills read “The third manifesto issued by the Chinese national journal in connection with the occupation of Shanghai by Japanese imperialists” and urged the laborers throughout the country to arm themselves in order to oppose foreign imperialism and a second world war and to overthrow the Kuomintang and support Soviet Russia. Another circular appeared urging the people to declare a general strike, to oppose the occupation of Shanghai by the Japanese imperialists, to arm themselves to oppose secret treaties concluded between the Kuomintang and foreign imperialists, to demand relief for unemployed workers, to oppose prevalence [proclamation?] of the state of emergency by the Shanghai Municipal Council, to oppose a second world war and to support Soviet Russia by force of arms. In this connection it has been officially intimated that many conservative Chinese are now thinking that it is better for China to become communistic than to submit to Japanese aggression. In view of the failure of the powers to assist China it was stated that Russia would probably be willing to assist China to the extent of selling her munitions.
6.
About 40 representatives of local business bodies held a meeting under the auspices of “National Salvation Association of the Shanghai Masses to Resist Japan”. Many resolutions were passed the most significant of which were: (1) that arrangements be made to organize a “people’s party group” which will be especially used to seize rice, (2) that workers of various factories organize their respective anti-Japanese associations, (3) that representatives of the various workers including bus workers, French tramway workers, Shanghai tramway workers, telephone workers, and Kiwa mill workers form a “laborers [Page 380] anti-Japanese federation[”], (4) that the unemployed laborers and refugees besiege the office of the Citizens Maintenance Association and demand the issue of rice.
7.
Japanese mills are still closed. Chinese and foreign mills with one or two exceptions also remain closed. Certain representatives of the workers in the Japanese mills have met and passed resolutions to the effect that no one be allowed to resume work unless it be decided upon by a general meeting of workers, that picketing groups and investigation groups be organized.

Repeated to the Legation and Nanking.

Cunningham