793.94/9485: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received August 18—7:28 p.m.]
507. Military situation as I see it is that the comparatively small Japanese force is very hard pressed and has had to give way somewhat in certain areas but Japanese now seem to have superiority in the air, their planes conducting bombing raids on Chinese positions and air fields. This probably is preventing annihilation of the Japanese force by overwhelming Chinese forces exceeding 70,000 surrounding the Settlement areas. Japanese batteries and naval craft have been conducting heavy gun fire on Chinese positions. Chinese seem to have only limited artillery.
Japanese military forces are not yet reported as having landed in this area. Transports are believed to have arrived off Liuho. When they land they will probably be in force and unless they are successful [Page 443] in a positive flank movement which might force rapid Chinese withdrawal, Shanghai area will become a field of desperate battle with the area of foreign refuge in serious danger. It is conceivable but I hope not probable that a situation may develop where foreigners may have to evacuate almost entirely. This is one of the reasons why we will encourage departure of men as well as women, so that the number of Americans left to be finally evacuated might possibly be handled on men-of-war.
The definite danger always exists that either Chinese or Japanese forces or both might break into the area of foreign refuge at any time when hard pressed or hard pressing.
There are hundreds of thousands of Chinese refugees in the Settlement and Concession additional to the usual resident Chinese population of about 2,000,000. The problem of dealing with them and feeding them is enormous but it is in the hands of China’s relief committees and municipal authorities who are doing their best and have not yet called for assistance. Health and sanitation problems are becoming serious.
Public utilities are threatened with breakdown. Electricity, water, and gas plants serving Settlement but not French Concession are inside Japanese area and near present theatre of intensive shell fire.
There is an increase of rowdyism, looting, and fighting amongst the Chinese. Rice shops have been the object of hungry crowds. There have been fights in streets and adjourning [adjoining] ways when crowds attacked lone Japanese or alleged Chinese traitors. Several of the victims have died of their injuries. The situation may be expected to become increasingly serious. The populace is being fed stories of Japanese victories and it is possible for a hungry and reacting mob to get completely out of control.
Repeated to Nanking.