793.94/10927: Telegram

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

920. My 912, October 30, 4 p.m.87 Under cover of a heavy artillery barrage Japanese troops yesterday afternoon crossed Soochow Creek at a point 4 miles west of Jessfield Railway. The western extra-Settlement area beyond the foreign lines was subjected to very heavy shelling last night and it is believed the Japanese will attempt to clear this area as soon as possible. However, these military operations are seriously endangering civilian life and property in adjoining foreign protected areas. Yesterday three more British soldiers were wounded by bursting shrapnel while one of those wounded on the 29th died of his wounds.

With the use of artillery during the night of the 30th the Japanese succeeded in dislodging the Chinese soldiers holding out in Chapei and the 300 survivors crossed to the British lines and laid down their arms; several office and hotel buildings in the down town district were hit by Japanese shells during the attack.

In Chinese circles there is an unconfirmed report to the effect that the Japanese military have presented the following peace terms to the Chinese Government:

(1)
disbandment of the Chinese air force
(2)
independence of Inner Mongolia
(3)
autonomy for the five northern provinces
(4)
departure from China of General Chiang
(5)
recognition of Manchukuo.

Sent to the Department; repeated to Nanking and Peiping.

Gauss