793.94/4724: Telegram

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

182. The following summarizes unreported incidents and conditions for the past week. Rumors of peace have absorbed public attention almost to the exclusion of everything else. To date so far as can be ascertained there is no substance to rumors. There are no indications that the Japanese intend to withdraw, Japanese reinforcements have been disembarking almost daily, military supplies and equipment in [Page 581] great quantities are being landed. The artillery included 8 eleven-inch howitzers. This would indicate continued occupation and yet peace rumors continue and Japanese talk peace and disclaim any intention of permanent occupation.

2.
Unconfirmed reports state that Japanese are strengthening lines of defense and there is large concentration of Chinese troops at Hangchow. Chinese troops have been drifting back to Hungjao, Lunghwa and Siccawei in small groups during the last few days. These seem to be unorganized groups of soldiers and if sufficient numbers drift they will be a menace to the country south of the Shanghai-Nanking Railway. This is beyond the limits of the foreign-controlled area.
3.
The foreign-administered area has not presented any difficulties south of Soochow Creek since before “fire cracker” night on 4th. Curfew has been advanced to 11:30 o’clock. The Public Works Department which had suspended routine duties for military defense work has practically returned to public works of peace kind. Though yet unable to get complete control of Hongkew and Yangtzepoo the International Settlement functions therein are approaching normalcy with less Japanese interference generally. The Shanghai Municipal Council has offered to undertake sanitation in war zones contiguous to International Settlement believing that sanitation will reduce menace to health of the Settlement. Electric lighting is reappearing at all points in Hongkew and Yangtzepoo. Foreigners can move in that section with practical freedom.
4.
Japanese military have proclaimed peaceful intentions and have urged Chinese to resume vocations in war zones and it is surprising the number who are returning to their labors in Hongkew, Yangtzepoo and other [extra-?] Settlement boundaries. The recent battlefield areas to north are not entirely open even to foreigners and travel in much of these and Chapei is attended with considerable risk. The Japanese have sympathetically considered practically every request which has been presented in the last 5 days by this Consulate General for assistance to preserve American industrial plants and property in war zone. Passes and protection have been given and accorded. Superficially the week has witnessed many improvements in conditions. Even the golf course which is but slightly to the west of the Kiangwan battlefield was open yesterday for play and the Chinese caddies were surprisingly easy to procure though that district is entirely in Japanese-controlled area. Of course, this class does not understand what the trouble was about nor has it any alternative but to return to work if it did know. It will take time to restore the devastated areas much of which probably will not be rebuilt for years. Much diplomatic work remains to be done before it can be determined [Page 582] whether or not the former owners are to be permitted to restore their plants. Chaos was produced in a few hours but it will take years to completely restore the destroyed area.

Repeated to Legation and Nanking, copy to the Minister.

Cunningham