Foreign Relations of the United States Diplomatic Papers, 1937, The Far East, Volume III

893.00/14150

The Consul General at Shanghai (Gauss) to the Ambassador in China (Johnson)³⁰

No. 858

Shanghai, June 23, 1937.

Sir: I have the honor to enclose a newspaper clipping³¹ which contains the observations of Mr. J. B. Powell, an American journalist residing in China, on his return from a recent trip to North China. It will be noted from a perusal of the article that Mr. Powell is pessimistic in regard to the future of North China as a part of China proper, and that he feels that the situation is in some respects parallel to that existing about Mukden prior to the outbreak of hostilities in September 1931.

While one hears comparatively little in Shanghai concerning the North China situation, I believe that there are some local Chinese who share his views and who feel that while the status quo is satisfactory for the time being, military aggression on the part of Japan will force the present administration of China into hostilities if it wishes to retain control of the Government.

Respectfully yours,

C. E. Gauss

30. Copy transmitted to the Department by the Consul General at Shanghai in his covering despatch No. 842, June 23; received July 27.
31. Not reprinted.