The Consul General at Shanghai (Gauss) to the Secretary of State
[Received July 12—9:50 a.m.]
352. Reference Embassy’s July 11, noon.63 Shanghai reaction to the situation in the north has been surprisingly mild. The Chinese press places responsibility squarely upon the Japanese but has not indulged in any violent outburst. Chinese officials and merchants as well as Japanese officials appear hopeful that the situation in the north may be localized and settled. I am informed that the Acting Minister of War and garrison commander have received telegraphic instructions from Generalissimo Chiang to make every effort to prevent any incident at Shanghai and to do their best to maintain peace and order. This is interpreted locally as indicating that the Generalissimo is desirous of localizing the incident and preventing aggravation of the situation.
2. Chinese and Settlement authorities have taken usual precautionary measures and have slightly increased number of patrols in areas where Japanese reside. As a precautionary measure, Chinese authorities [Page 141]have suspended the celebrations in connection with the tenth anniversary of the establishment of the Shanghai City Government. Japanese naval landing party have increased number of patrols in one district but otherwise have taken no unusual steps. There have been no anti-Japanese demonstrations thus far.
To Peiping and the Department; to Nanking by mail.
- Apparently not repeated to the Department.↩