793.94/11323: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received 4:03 p.m.]
1023. Reference your 576, November 24, 6 p.m.53 The general manager at Shanghai of the company named tells me that he has sent no such message to New York and has received no such information from Tokyo. I learn, however, from well informed sources in touch with the Japanese that the question of a declaration of war against China has been under discussion at Tokyo and that there is some feeling that it may eventuate. The opinion is expressed that a declaration of war would permit of an effective blockade against the munitions traffic through Hong Kong and that it would give a better legal basis for many measures such as the seizure of the customs and other Chinese interests, complete freedom of action in China by the Japanese being obstructed by foreign rights and interests which could be more readily suspended or ignored under the historical precedents of international law governing belligerent armies of occupation. A general blockade under a declaration of war could of course completely disrupt the foreign position in China and facilitate any desired uprooting of foreign interests if the Japanese military are prepared unwisely to sacrifice the position of Japanese abroad for complete domination in China. A declaration of war would of course present serious problems for the International Settlement of Shanghai and bring about Japanese military dictation or control. An immediate question would be the status and disposition of our armed forces ashore. One Japanese source is quoted as saying that no decision on the question of a declaration of war is likely to be made until after the occupation of Nanking (which the Japanese expect to come off by Christmas) and the further continued refusal of China to negotiate peace.
Repeated to Ambassador at Hankow.