793.94/11107: Telegram
The Consul General at Canton (Linnell) to the Secretary of State
[Received November 14—11:14 a.m.]
Boarding parties from a Japanese destroyer newly arrived in the Pearl River lower delta yesterday stopped and searched the papers of the British-owned river steamers Fatshan and Tungon on their Way from Hong Kong to Canton. Japanese have recently several times similarly stopped and inspected papers of French and Portuguese registered steamers plying between Hong Kong and Kwangchowwan.
As far as can be judged from the press and private contacts, local authorities and public while frankly disappointed over Shanghai and Shansi reverses, generally show no sign of defeatism and feel that successive withdrawals to interior are necessary features of China’s prolonged resistance strategy. This long range conception of the struggle is even more evident in Kwangsi where economic development and strategic communications construction by huge labor armies are pushed steadily, together with extensive military and aviation training, without regard to momentary fortunes of war.
Chinese circulars and press generally denounced Anti-Comintern pact as camouflage of secret arrangement whereby the three countries join in promoting their aggressive aims and sabotaging Nine Power Conference. While appreciating American efforts for peace through agreement they feel that democratic countries led by America and Britain now have no alternative but strong concerted action to restrain aggressor nations. Chinese organizations continue to bombard Conference with cables urging sanctions against Japan, while steps [Page 680] have been taken to complete the suppression of locally smuggled Japanese goods and severance of transactions with Japanese banks.
Mailed Hong Kong, Swatow.