793.94/14381

The Consul General at Shanghai (Gauss) to the Secretary of State

No. 1780

Sir: I have the honor to enclose copies of two memoranda,58 prepared by the Regimental Intelligence Officer of the Fourth U. S. Marines, dated October 18 and 24, 1938, containing observations on two recent trips he has made through Japanese occupied territory.

His summary at the end of the second report is particularly interesting as showing confirmation, by a trained observer’s first-hand observations on the spot, of this office’s feeling on several points, as reported from time to time.

His summing up may be condensed briefly as follows:

1.
The guerrillas in this area have been completely unable to disturb the Japanese lines of communication.
2.
Japanese losses have been serious.
3.
The ordinary Chinese are dumbly acquiescent to the Japanese domination.
4.
The Japanese have put to warlike use large numbers of peaceful craft.
5.
The Special Service Section is managing puppet government organizations, importing Buddhist Monks for the education of Chinese children and is reported to be marketing narcotics, all with a basic political purpose.

Respectfully yours,

C. E. Gauss
  1. Neither printed.