893.102S/1785: Telegram

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

333. Reference Chungking’s 300, May 1, 3 p.m. The Shanghai Municipal Council and the French Concession authorities are seeking to limit the display of the Chinese National flag in the Settlement and Concession to 8 days a year representing principal Chinese holidays. They have notified the Chinese rate payers associations accordingly and, while the associations are not expected to indicate their acquiescence, it is believed that they will accept the limitation. The Japanese authorities have also been informed but there has as yet been no reaction from that quarter.

The mass display of the Chinese flag on every possible occasion has undoubtedly been undertaken as a demonstration of defiance of the Japanese from behind the protection of the foreign municipal administrations and the foreign forces at Shanghai. Unless these activities at Shanghai which it is believed are due to Chinese official instigation cease, a situation may well result which will lead the Japanese military authorities to take repressive measures.

Repeated to Chungking and Peiping. Code text by air mail to Tokyo.

Gauss