893.102S/1798: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received May 12—1:20 p.m.]
377. The Japanese Consul General left yesterday for Tokyo reportedly to confer on the Shanghai problem.
The American Chairman of the Shanghai Municipal Council tells me that he considers the American attitude on the Settlement question as of especial importance as only the United States can have an effective influence on Japan at this time, that he believes the greatest danger is that the Japanese military or naval forces might decide to occupy the Settlement without prior reference to Tokyo, and that in indicating our inability to undertake the revision of the land regulations at this time it would be effective if the United States were to declare and make public that it would regard as an unfriendly act any measures taken without our assent affecting the status of the Settlement.
I do not believe that military occupation is likely without the full knowledge of Tokyo and careful preparation. I am of the opinion, however, that it might be desirable to make it known that we would take a serious view of any measures affecting the status of the Settlement without our assent.
Repeated to Chungking and Peiping, code text by air mail to Tokyo.