793.94/6837: Telegram
The Chargé in China ( Gauss ) to the Secretary of State
[Received January 25—1:40 p.m.]
36. Legation’s telegram No. 34, January 24, 2 p.m. Senior Secretary of Japanese Legation states that action reported as taking place on January 22 occurred on January 23 and was only important action on that day; that no information has been received with regard to press reports of bombing of Tushihkou, which lies within the Great Wall and south of Kuyuan; and that it is expected Chinese and Japanese military will confer for a settlement of the situation. All sources now claim that Kuyuan was not occupied. According to Chinese official sources, Japanese planes dropped 7 bombs January 24 on Tushihkou [Page 20] causing casualties and destroying 50 houses. Assistant Japanese Military Attaché is reported to have said that this bombing has no significance.
It still appears that military action will presumably spread, but if a conference is inevitable it is not unlikely that the Japanese may make demands which will further affect Chinese sovereignty, such as a possible demand for establishment of a demilitarized zone along the Chahar-Jehol boundary. The recent military activity may also be made use of to strengthen the Japanese diplomatically vis-à-vis China.