793.94/8209: Telegram

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

527. My October 1, 4 p.m. No substantial change in measures adopted yesterday by Japanese forces though a few barricades are reported to have been removed. Slight exodus of Chinese from Chapei and Hongkew districts.

First Special District Court today rendered decision in the Nakayama case, two suspects being sentenced to death and the third accused being found not guilty. Verdict which is pleasing to the Japanese, though resented in some Chinese circles, may now result in relaxation of strong “precautionary” measures taken by the Japanese.

Repeated to Department and Peiping. By mail to Nanking.

Gauss