893.00/13809: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received December 21—12:05 p.m.]
662. 1. Local interest today centers in activities of T. V. Soong at Sian where he is reported endeavoring in private capacity to effect release of Generalissimo and also in flight yesterday of General Huang Shao Hsiung to Taiyuan to enlist aid of Yen Hsi Shan in solving Sian crisis. Meanwhile Nanking Government appears to be maintaining firm attitude towards settlement of issues.
2. Japanese Ambassador Kawagoe who left Shanghai yesterday for Nanking under instructions to interview Chinese Foreign Minister will according to Japanese press reports express deep interest of Japanese Government in terms of any compromise that may be negotiated between Nanking and Sian, pointing out that Japan could not remain unconcerned should such settlement provide for adoption by Nanking of policy of cooperation with Communists to oppose Japan. At present however the Japanese continue to maintain an attitude of watchful waiting.
3. Local stock, bond and exchange markets remain steady and trade continues uninterrupted.
4. Repeated to Nanking by mail; to Peiping by airmail.