793.94/11232: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received 7:29 p.m.]
1002. 1. Reference my 996, November 21, 8 p.m. I have confirmed that the Japanese Consul General on Saturday morning submitted to the Chairman of the Municipal Government a five-point outline of measures which the Japanese military authorities desire be adopted by the Council. The five points are included in the points mentioned in my telegram No. 996, point 3 of the latter part covering three points of the Japanese outline.
2. On point 1 of my telegram, the Council has for some days been taking appropriate action and it is undoubtedly prepared to do all that is reasonably possible in the direction desired.
3. On point 3 of my telegram, the Chinese censors have already withdrawn from the telegraph and cable offices and there should be no difficulty whatsoever in effecting withdrawal of any remaining censorship. The difficulty will be to prevent Japanese censorship in its stead although this was not proposed.
4. On point 2, the Chairman of the Council agreed that action could probably be taken to ensure removal or closing of any Chinese Government offices now functioning except the customs, posts, and telegraphs which it was suggested are matters beyond the control of the Council and in which the foreign Consuls may be interested. The suggestion of interest of the foreign Consuls was not well received.
[Page 708]5. The Japanese Consul General desired the immediate eviction of O. K. Yui, the Chinese Mayor of Shanghai, Mr. T. V. Soong, Mr. Wang Hsiao Lai, Chairman of the Chinese Chamber of Commerce, and Tu Yueh-seng, close friend of the Generalissimo and reportedly head of the opium traffic and of a gunmen racket. He indicated that others might be added to the list. The Mayor is reported to have gone to Hong Kong but this cannot be confirmed. The others are probably in the French Concession if they have not already decamped. The Chairman of the Council informed the Japanese Consul General that the Council has no power of deportation if these persons are conducting themselves without prejudice to law and order. The impression given by the Japanese was that it would make for a better atmosphere if private persuasion could effect the departure from Shanghai of the persons named. I believe this matter is one principally for the French Concession authorities.
6. I understand that representations were made to the French Concession authorities along the same lines as those made to the International Settlement authorities.
7. I have been told from a confidential source that General Matsui contemplates forcible seizure of the customs and perhaps of the Chinese Government banks and that he is not disposed to listen to advice for a more moderate course. I am unable to say whether this was being put about for the purpose of intimidating those concerned to ready acquiescence in Japanese demands.
8. On Saturday afternoon following the visit of the Japanese Consul General to the Chairman of the Council, the Japanese Military Attaché called on the Secretary General of the Council and communicated a message from General Matsui in general terms to the effect that he expected the Council to take immediate steps to suppress subversive actions of Chinese Government organizations and other groups in the Settlement which are anti-Japanese and if the Council fails to take these steps General Matsui will be compelled to take them himself. It was at this latter interview that it was made known that the Japanese contemplated marching troops along the Bund south of the Creek as reported in my 998, November 22, noon.
9. I do not propose to take the lead at Shanghai in these matters, but I have suggested to the Senior Consul that it would be well to call a meeting of the principal interested consuls to discuss the situation and invite the Japanese Consul General to attend where we may do what we can with him to advise a moderate course which carefully respects foreign interests and which does not reintroduce Japanese troops into the area south of the creek.
10. I should add that the Japanese naval landing party, in informing the United States Marines this morning of their intention to take [Page 709] over protection of Japanese life and property and restore guards in the Japanese mills, pointed out that a guard of United States Marines has been stationed at the American-owned electric power plant in the Yangtzepoo area now occupied by the Japanese and that it is supplied by armed marine trucks which pass into the areas. Developments will be reported promptly.
Sent to the Department, repeated to Tokyo.