793.94/10972: Telegram
The Commander in Chief, U. S. Asiatic Fleet (Yarnell) to the Secretary of State
[Received 10:24 p.m.]
0003. Conference held this morning with General Chu Hsiao Liang and Mayor Yui of Shanghai. They were informed of serious situation that has existed in neutral area due indiscriminate bombing, shelling and impressed with necessity steps being taken to avoid such incidents in future. Chinese planes flying over Settlement which draw large volume Japanese anti-aircraft fire cause of many casualties. Also discussed possibility of neutralizing Pootung and Nantao sections in order decrease loss civilian lives and property through military action. Their answer was that instructions would be given and greater care exercised prevent Chinese planes flying over International Settlement. [Page 658] With reference to neutralization of Nantao and Pootung they replied that while they would be willing to enter upon such an agreement they would be unable rely on any guarantee on part of Japanese that no military action would take place in that area. However, they would report matter to Nanking and let us know results. I am dubious whether any agreement can be reached in view previous failures all such attempts.