793.94/10260: Telegram

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

762. Reference paragraph 1 of the Department’s 321, September 3, concerning the use of the International Settlement by the Japanese as a military base. In a letter to me dated yesterday the Commander in Chief suggests that the time has arrived for definite representations either by the Ambassadors or their Governments concerning this matter. He points out that since the arrival of the Japanese Army on August 23 the wharves of the Hongkew section have been the main [Page 551] base for unloading supplies and troops and evacuating wounded, that on September 23 5 transports landed 4,000 troops and that it is understood 15 transports have used the docks in the past 3 days. He points to the fact that the Chinese authorities in replying to protests concerning danger to neutrals and their ships in the river stress the point that the Settlement is being used as a Japanese base.

2.
The record shows that on the 15th the consular body caused oral representations to be made on the subject to the Japanese Consul General who replied that the Japanese naval landing party, being stationed here for the protection of Japanese interests, had the right to use portions of the Settlement for the landing of supplies and reenforcements the same as other foreign military units and that the landing party or any other Japanese armed force was or would be acting only in self-defense.
3.
Neither the Council nor other authorities have requested or suggested further protests and I do not think that the Department would wish me to initiate them. All protests will be futile, of course, but the Department may wish to consider a protest at Tokyo. I understand from the Commander in Chief that he has brought the matter to the attention of the British Commander in Chief who has referred it to London.
4.
While it is, of course, important that the principle be maintained that no armed forces should use the Settlement as a base for hostile military operations, as a practical matter I consider it more important that we should insist that the foreign areas south of Soochow Creek now protected by the neutral foreign forces shall be respected and that neither Chinese nor Japanese troops shall enter such enclosed areas. It is pertinent to record in this connection that while Chinese and Japanese troops are not permitted to enter these areas a constant [stream?] of 5,000 wounded Chinese soldiers is being hospitalized here and when discharged they are passed out to the Chinese lines. National Government administrative offices and purchasing agencies may possibly continue to function in these areas.

Sent to the Department. Repeated to Nanking.

Gauss