793.94/9456: Telegram
The Secretary of State to the Ambassador in France (Bullitt)
436. Your No. 1171, August 17, 7 p.m. Under the terms of the Neutrality Act, the President whenever he “shall find that there exists a state of war” between Japan and China is obliged to proclaim that fact and to put into effect an embargo on direct or indirect shipment of arms to both belligerents. The hostilities in progress do not appear to have taken on as yet such a character that they must clearly constitute war between the two nations. At this time it is impossible to predict whether application of the law will become necessary. As the President stated in his press conference yesterday in reply to an inquiry on this subject, “things are on a 24-hour basis” and it is not possible to say when they may change. Meanwhile, we are continuing to urge upon the Chinese and Japanese that both sides withdraw their forces from Shanghai, taking the position that the responsibility for the fighting there is joint and cannot be thrust by either party upon the other. In the event that we should take action under the Neutrality Act we will endeavor to let you know in advance.
I endeavored in my press conference40 which was carried in yesterday’s Radio Bulletin to give the picture as we see it and to emphasize certain of the factors which are controlling us in the formulation of our policy.