793.94/12429: Telegram
The Ambassador in China (Johnson) to the Secretary of State
[Received 5:40 p.m.]
104. The situation presented in my telegram No. 76, February 3, 2 p.m.60 as it must of necessity affect American commercial, economic and cultural interests in China is depressing. It is true that Japan has assured the United States that it has no intention to damage American interests. When American property has been damaged Japan has made haste to compensate the loss. Japan has expressed regrets and made apologies for insults and injuries. But nevertheless it becomes increasingly plain that American interests are being materially and adversely affected as the Japanese military machine rolls ruthlessly and relentlessly on destroying everything in its path. Witness the taking over of the Chinese customs, the making of a new tariff favorable to Japanese trade, the importation of Japanese goods into these areas such as kerosene and rayon in North China, without payment of duties, the destruction of American Mission premises, hospitals and schools in Soochow and Wusih, the continued occupation of the American Baptist College at Shanghai, the occupation of Tsinghua at Peiping. We evacuate our people only to have them go back to businesses that have been wrecked, mission stations that have been sacked, and unable to say who wrecked them as they had not personally witnessed the wrecking. In many cases evacuated Americans [Page 268] tactfully refused permission to return to their stations or businesses after the Japanese military have completed occupation of the area and hostilities have ceased. I have found it impossible to envisage any plan which might be helpful in enabling Americans to resume where the present hostilities have forced them to leave off. American merchants cannot hope to compete with Japanese for what little business will offer when the period of reconstruction begins, except of course as they may sell to Japanese. American cultural enterprises which had begun to find a new place for themselves in cooperation with newly founded cultural efforts of the Chinese nationalism will suffer because of that cooperation and will find it necessary to cooperate with the Japanese effort at suppression of Chinese nationalism. The whole business of the future of American interests, economic, commercial and cultural, will be so beset with difficulties that many will be discouraged and quit the field.
Repeated to Peiping and Shanghai. Shanghai please relay to Tokyo and show to Commander-in-Chief.