893.00/14428: Telegram

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

[Extract]

Monthly Summary

1.
A tense situation developed at Shanghai between the authorities of the International Settlement and the Japanese and their Chinese Municipal Regime following a clash on August 19 on an extra-Settlement road between an armored car patrol of the Shanghai municipal [Page 72] police and a detachment of police of the Chinese Municipal Regime. It appears that the British sergeant in charge of the armored car patrol was fired upon and slightly wounded whereupon he returned fire with a sub-machine gun, killing two of the Chinese police and wounding several others. The mayor of the Municipal Regime strongly protested the incident, placing full responsibility on the Council and demanding an apology, punishment of the British police sergeant, a solatium, and surrender by the Municipal Council of claim to jurisdiction, on extra-Settlement roads. The Japanese authorities supported the protest, and it is learned that additional Japanese troops were moved into the port with the reported intention of “bringing the Council to its senses”. The Municipal Council rejected the protests, asserting that investigation disclosed that fire was opened by the police only after he had been fired upon and wounded. The Council offered, however, to submit to a fullest inquiry to establish the facts. This offer was rejected by both the Chinese and the Japanese. The dramatic turn of events in Europe, however, marked by the German-Soviet non-aggression pact, led the Japanese Government to consider the reorientation of its foreign policy and resulted in, at least temporary, suspension of the plans to bring military pressure on the authorities of the International Settlement. The incident remains unsettled.
2.
Just at this time an understanding was being reached between the Shanghai Municipal Council and the Japanese authorities for the return of the areas of the Settlement north of Soochow Creek to the police control of the Council. The understanding at the same time contemplated increased Japanese participation in the police administration. However, the Japanese Consul General notified that the proposed arrangement would be suspended because of Japanese loss of confidence in the Shanghai municipal police.
3.
Anti-British agitation continued during the month and received impetus from the incident involving the British police sergeant, the whole affair being given a definitely anti-British complexion by the Japanese controlled press and the Japanese authorities who asserted that the incident constituted a breech of the Arita-Craigie Agreement75 and demonstrated British callousness and insincerity.
[4.]
The breakdown of the Anglo-Japanese negotiations at Tokyo was considered here as likely to be followed by a firmer British policy vis-à-vis Japan. This development was particularly welcomed in Chinese circles.

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Sent to Peiping. By mail to Nanking.

Gauss
  1. See telegram No. 348, July 21, 6 p.m., from The Chargé in Japan, p. 224.