493.11 Shanghai/54

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

Sir: I have the honor to invite the attention of the Department to a communication received by this Consulate General from the office of the Mayor of Greater Shanghai in which that official quotes the Ministry of Foreign Affairs’ opinion as well as his own relative to the Government of China’s responsibility for losses (included in four claims numbered 1556WD to 1559WD) in the amount of U.S. $3,857.84 sustained by the Socony-Vacuum Corporation during the Shanghai Incident. The communication in question reads as follows:

“I have the honor to acknowledge the receipt of your letter pertaining to the claim for damages of Gold $3,857.84 lodged against the Chinese Government by the Socony-Vacuum Corporation and transmitting a statement of loss with the request that an early settlement of the matter be effected.

In reply I have to inform you that after having transmitted your letter to the Ministry of Foreign Affairs, I am now in receipt of a reply therefrom which is quoted in part as follows:

‘Relating to the Shanghai hostilities last year whereby the Japanese utilized the Settlement as a base of military operations for attacking the Chinese, it is to be recalled that this Ministry had repeatedly lodged protests with the British, American and French Ministers and reiterated the statement that the Chinese Government would not be responsible for any damage or loss to life and property resulting from Chinese fighting in self-defense against the Japanese who made continuous attacks on the Chinese troops in Chinese territory. This Ministry realizes that the loss sustained by the Socony-Vacuum Corporation is a result of the Japanese forces being permitted by the International Settlement authorities to utilize the Settlement as a base of military operation. It has been noted when checking up the location and dates in the statement that the places in question were all at that time occupied by the Japanese. It is quite apparent therefore that the losses sustained by the foreign nationals were recklessly created by the Japanese, for which China can bear no responsibility whatsoever,’ etc.

As regards the permission of the Settlement authorities or their failure in restraining the Japanese forces from using the International Settlement as a base of operations in attacking the Chinese troops during the Shanghai War last year, I had on several occasions requested your good self as well as the consuls general of the other nations to give stringent orders to the Shanghai Municipal Council to take effective measures to stop the Japanese troops from engaging in an operation as mentioned above. At the same time I emphatically declared that the National Government would bear no responsibility whatsoever for any damage which might be done to the life and property of foreign nationals, when such damages were caused by war operations and when the Chinese were fighting in self-defense against the Japanese who were using the International Settlement as a base of operations. All these facts are on record.

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Since I have received the above communication (from the Ministry of Foreign Affairs) it is my duty to transmit it to you for your perusal.”

For purposes of reference the Department is respectfully referred to its instruction to the Legation No. 881 dated September 21, 1932, its memorandum with enclosure to this office dated November 29, 1932 and to my despatch No. 8679 dated December 29, 1932.89 The four claims under review were submitted on January 18, 1933 to both the local Chinese and Japanese representatives. The Japanese acknowledged receipt of the four claims making only the usual reply that they had transmitted them to the Japanese military authorities.

The Chinese, as the Department has already been informed, failed to acknowledge receipt of any of the claims previously presented until so requested. It may be of interest to the Department to learn that the first claim (1554WD) covering losses sustained by the Socony-Vacuum Corporation and referred to in my despatch No. 8699 [8679?] of December 29, 1932 was presented to Chinese on November 16, 1932 without causing any disclaimer of responsibility.

To date this office has transmitted on behalf of the Socony-Vacuum Corporation to both the Chinese and Japanese authorities five claims identified by the markings 1554WD and 1556WD to 1559WD inclusive. It is believed that a copy of each of these claims has been filed with Department by the Legation.

Respectfully yours,

Edwin S. Cunningham
  1. None printed.