Foreign Relations of the United States Diplomatic Papers, 1939, The Far East; The Near East and Africa, Volume IV

893.102S/1895: Telegram

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

Shanghai, September 23, 1939—4 p.m.
[Received September 23—noon.]

852. Reference Japanese proposals for revision of Settlement defense plan.

1. Commander of Fourth Marines informs me that at first meeting of defense force staff officers yesterday the Japanese orally outlined proposals which would confine defense sectors strictly to boundaries of International Settlement and abolish the present British sector in the important western extra-Settlement road area.

2. Japanese and American forces would remain in their present sectors. Italians would be assigned to West Hongkew north of Soochow Creek now occupied by British. British would occupy the downtown area of the Settlement from the bund to the race course. The proposals ignore the Shanghai Volunteer Corps which would have no sector.

3. No mention was made at the meeting of the French Concession or the French forces. No French representative was present.

4. Japanese suggested second meeting 1 week hence but were informed that it is too early to permit Commandants thoroughly to study the proposals and instruct their staff officers. The meeting adjourned subject to call, probably not for a fortnight.

5. By abolishing the British sector in the western area the Japanese intend to regard the area as under Japanese occupation and control in the same manner as other areas around Shanghai. They mentioned the present dispute regarding policing in the area, saying that the procedure remains to be settled between the Municipal Council and the Mayor but intimating, rather significantly, that the Chinese police have the support of the Japanese military. It is also significant that it is proposed that the Italians occupy the area where is located the Chinese criminal court.

6. We have reason to suspect that the Japanese proposals represent the views of young officer element.

7. I have already informed the Department of the thoroughly unsatisfactory situation in the western area where the Chinese puppet Municipal Regime demands that the Municipal Council surrender all claim to the right to police the Municipal roads; where the Chinese police have been heavily reinforced and are supported by Japanese gendarmes of the special service section of the Japanese Army; where a notorious bad lands has been established to afford the Japanese and their Chinese puppets a huge revenue from numerous gambling establishments and opium and narcotic dens; and where Chinese gunmen and thugs are allowed to rendezvous in large numbers. This situation in itself is a threat to the security of the large number of European and 500 American residents along the Municipal roads in the area, which is the principal area of foreign residence at Shanghai outside the French Concession. There are few Japanese resident in the area. The present Japanese proposal to remove foreign troops from the area, along with their efforts through their puppet Municipal Regime to demand the withdrawal of the Municipal police from the roads, cannot be regarded otherwise than as a deliberate aggression on American and European interests.

8. The difficulties of the situation are further complicated by the attitude of the British who wish to avoid a clash with the Japanese forces or the Japanese supported Chinese police. The Commandant of the British forces has recently informed the Municipal Council that while he is prepared to give the Municipal police full support under ordinary circumstances by a show of force and patrolling, in event of a serious clash between the Municipal police and Chinese police controlled or supported by the Japanese gendarmes, he will not be able to use force in support of the Municipal police except in cases where British lives are in danger. British Commandant however, is not disposed to abandon the western area unless so instructed by his superiors.

9. Admiral Hart is at Tsingtao and not expected to return to Shanghai until about October 4th. I have been in close touch with Rear Admiral Glassford⁸⁷ and Colonel Fegan of the Fourth Marines. Admiral Hart is being kept informed through Glassford.

10. My comments and suggestions will follow in a day or two.⁸⁸ I can see little possibility of any satisfactory solution unless the Government at Tokyo will stop the activities of the Japanese gendarmerie and the Chinese police of the Japanese sponsored Municipal Government in the western area where there is constant danger of a clash with the Municipal police. The action of the Japanese gendarmes and the police of the Chinese Municipal regime in moving in on the western areas in large numbers even before the Japanese proposals for revision of the defense plan were made and while they are under discussion is in itself evidence of bad faith and of the aggressive character of the Japanese plans in respect of an area where American and European interests predominate and there are no substantial Japanese interests except the bad lands which they have themselves established for revenue and other purposes.

Repeated to Tokyo, Chungking and Peiping.

Gauss

87. Commanding Yangtze Patrol, U. S. Asiatic Fleet.
88. See telegram No. 860, September 25, 7 p.m., below.