393.115/99: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received December 25—5 a.m.]
1221. Your 686, December 22, 7 p.m. I firmly believe such graft and bribery exist but no proof has been obtainable and unsubstantiated charges result only in resentment. Those involved are believed to be underlings working through indirect and obscure channels. We assisted in suppressing one foreign national connected with the rabble. While continuing to seek proof, we have devoted our energies principally toward getting as extensive facilities as possible for American interests and I believe we have been more successful than others having larger interests, but the situation remains definitely unsatisfactory. No orders for the removal of cargo have been obtainable since December 17th and no reason for the suspension of facilities has been ascertained.
- 2.
- In addition to removal of cargo we are facing other numerous pressing problems including (1) difficulty in obtaining permits to visit factories and plants, provide for repairs, for caring for machinery, and for stationing of watchmen and custodians; (2) impossibility of obtaining any permits for removal of cargo from certain important Chinese and Japanese wharves and warehouses in the area north of the creek (we have there several hundred thousand dollars worth of American goods; no one has been able to obtain delivery of cargo from such warehouses and wharves since outbreak of hostilities probably because they are still occupied and used by the military); (3) refusal of permission to American and other foreign nationals to return to their homes, hospitals, and missions in the Hungjao, Nantao and other areas, and until recently, inability to obtain permission to view and inspect such properties some of which have been occupied, looted, and pilfered [Page 411] by Japanese as well as Chinese; (4) interference with wharf properties, et cetera.
- 3.
- Hongkew and most of Yangtzepoo Districts have been opened for residence by former foreign residents under rigid restrictions and permits but this concession is of little value. A very few Americans and some Filipinos have availed themselves of it principally because of cheaper living conditions.
- 4.
- We are continuing persistently to press all these matters with Japanese who, however, are undoubtedly obstructed by the naval and more especially the military authorities. While I have appreciated the efforts made at Tokyo and by representations they have been of no avail and I have been endeavoring to find the remedy by constant local pressure.
- 5.
- It is possible that our opposition to entry of Japanese armed forces south of the creek has had something to do with the disinclination to relax restrictions elsewhere, but I am firmly opposed to yielding in that direction. While it is largely a military matter I regret the assent given to stationing of Japanese armed forces in Japanese mills in the American sector as from January 1st. The mills have been well protected. If Japanese protection is desired it should be supplied by consular police or watchmen and not by their armed forces. I have urged my Japanese colleague to induce his military authorities to permit the hundreds of thousands of Chinese refugees in the areas south of the creek to return to their homes in the outskirts and surrounding country side so that the foreign areas may be returned to normal and special foreign military protection may be suspended and the whole port return to normal. I believe he agrees but his naval and particularly his military authorities do not yield readily. He has repeatedly assured me and my colleagues that he is doing his utmost to remove restrictions and I credit what little has been done to his efforts alone. The military and to a certain extent the navy apparently take the position that they are masters of Shanghai with rights of accession and all interests including foreign interests must be made to realize it.
- 6.
- British Ambassador at Tokyo is reported to be pressing for a general relaxation of restrictions on foreign business interests at Shanghai. It is possible that at this time when there is some disposition to make amends for the Panay51 and other incidents, American representations to the same end might be made but I believe they should be strong and made in the highest quarters by the highest authority.
- 7.
- These and numerous other matters continue to keep the Consul General under the most constant and exhausting pressure. I am no more satisfied with the results of our efforts than are our nationals but the situation is exceedingly difficult and no others are making greater efforts or obtaining better results. We have obtained the release of personal and household effects of approximately 450 American nationals, the removal of about 3,000 truck loads of cargo, and the issuance of about 200 passes for indefinite visits to the areas. We need to move approximately 4,000 additional truck loads of cargo.