893.102/79: Telegram

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

464. Reference Department’s No. 149, June 2, 7 p.m., to Tokyo,67 regarding statement of Japanese spokesman regarding International Settlement at Shanghai.

1.
Regarding Tokyo’s No. 246, May 28, 3 p.m., the Domei News Agency reports here that the Japanese Embassy spokesman has stated that the Foreign Office spokesman was erroneously reported and that what he stated was that “a settlement or concession does not constitute a territory but simply an area where a foreign country or countries exercise administrative rights, so that only to that extent China’s [Page 63] territorial sovereignty is temporarily limited or suspended there. In the areas under Japanese occupation, Japan aims, so long as hostilities are being carried out, at expelling China’s sovereignty from the areas, and placing it under Japan’s military control. Since the anti-Japanese terrorism in the Settlement is a disturbance under the direct order from the Chungking Government, it is to be regarded as a part or extension of China’s military operations. Therefore, Japan is justified in the attempt to clean anti-Japanese elements out of the settlements.”
2.
Counselor of British Embassy tells me that they had noted the remarks of Japanese spokesman at Tokyo and suggestion was made to London that some notice thereof might be taken. He has no information as to what decision was made in the matter.
3.
While the statement made by Foreign Office spokesman may be given a certain importance and justify an informal approach along the lines proposed by the Department, I do not believe that the statement made here by the Japanese Consul General after his return from Tokyo need be given official cognizance at this time. He has made no approach as yet to me or to the British Consul General or to the Municipal Council regarding the International Settlement.

Repeated to Tokyo, Peiping and to Chungking.

Gauss