793.94/4130: Telegram

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

36. Continuing my daily report 30, February 10, 4 [8?] p.m.

1.
Except for occasional rifle, machine-gun and artillery fire the Chapei sector has been relatively quiet. Fires, one of which was observed to have been started by Japanese incendiary shells, have been started in Chapei sector.
2.
Japanese state that Chinese troops at Nantao fired upon the Japanese destroyer anchored at Pootung. Admiral Nomura is reported to have stated that he had moved his destroyers to obviate any collision. Chinese Mayor’s office reported that the Chinese troops had received strict instructions not to create disturbance at Nantao. This alleged incident may be due to the fact that a rumor was current yesterday to the effect that the Japanese would attack Nantao.
3.
Japanese ship captain reported to have been shot in paragraph No. 3 of my 30, February 10th, died last night. Japanese authorities state that they are filing vigorous protest.
4.
The situation at Woosung has remained comparatively quiet. Sixteen Japanese transports are reported to have arrived off Woosung. The latest information is to the effect that they are landing troops this afternoon preparatory to an attack.
5.
The Japanese defense force on the roofs of the Toyoda new mill, mentioned in paragraph 5 of my yesterday’s telegram, have been withdrawn. They were replaced by 20 armed sailors.
6.
Chinese native banks, although they have resumed business, are proceeding cautiously. Checks and [cash?] are still being presented for deposit in native banks only. This precaution is one of several instituted in order to prevent the flight of money to foreign banks.
7.
There is congestion of goods on wharves and in warehouses principally because of the arrival of relief grain shipments and heavy [Page 285] cotton arrivals. Shippers are finding it difficult to send relief shipments up river. Also many native importers are failing to take delivery of cotton.

Repeated to the Legation and Nanking for information.

Cunningham