124.932/575: Telegram
The Third Secretary of Embassy in China (Allison) to the Secretary of State
[Received 1:45 p.m.]
52. My 51, February 7, 8 p.m., and the Department’s 51, February 4, 4 p.m. With regard to private claims the Department’s position, as outlined in the telegram under reference, was carefully explained to Mr. Fukui but he insisted upon including in any note he might write the following statement: “The Japanese will not assume responsibility for damages resulting from military operations.” I have informed him that in such a case I should have to make an express reservation of all rights in respect to such damages. It is believed, as a matter of fact, that damages to American property in Nanking caused by military operations are comparatively slight as most of the damage occurred after the occupation of the city by the Japanese.
The Japanese authorities insist upon making investigations into each case as it is presented with a view to establishing whether the damage was actually caused by Japanese troops or by Chinese looters and plain-clothes soldiers who, according to the Japanese, were responsible for much of the disorder in the city. It is feared that considerable delay may take place in the settlement of these claims inasmuch as in many cases it will be impossible to prove absolutely who the guilty party was. I therefore suggest that in the presentation of claims for damages known to have taken place after the fall of Nanking I be instructed to take the following stand: inasmuch as a number of American citizens, who were in Nanking at the time of its occupation, investigated the condition of much of the American property in the city, it is possible to know definitely whether such property was in good condition on and after the Japanese occupation. It is believed that responsibility for law and order in Nanking after its fall rests with the Japanese authorities who were in occupation and that claims for such damages as can be proved to have taken place on or after December 13, 1937, the date of the occupation, should be paid by the Japanese with a minimum of delay. Such damages as may have been caused by military operations can then be taken up through diplomatic channels in Tokyo, while the smaller claims, mostly for damages to property of individuals, can be settled locally in Nanking. Instruction on this point is requested.
Sent to Embassy, Hankow, repeated to Peiping and Shanghai. Shanghai please repeat to Tokyo.