793.94/7375: Telegram

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

674. My 669, November 12, 4 p.m.39

1.
Conditions remain tense, the Japanese press stress numerous anti-Japanese incidents, some very insignificant. At 7 p.m. on November 11 at corner Nanking and Fukien Roads unknown persons smashed window of a Japanese shop and distributed anti-Japanese and anti-Kuomintang handbills; this was most serious of incidents that have happened. Secretary General of Shanghai Municipal Council40 yesterday reported an interview with Japanese Consul General the preceding day wherein the Consul General stated that culprits who killed Nakayama and are carrying on anti-Japanese campaign must be found. Secretary General regards conditions as exceedingly serious and inquired whether American military forces could protect the International Settlement against invasion by Japanese; he was informed emphatically that this would not be possible. He also inquires whether Shanghai Municipal Council should resist by military force any attempt by Japanese to oust functionings of Shanghai Municipal Council from the Hongkew district and was informed that my personal view was that the Municipal Council should do all within its power to maintain its functionings short of actual aggression. He approved my informing the Department and the Ambassador of his inquiry and my reply.
2.
This morning the British Consul General and the Chairman41 and Secretary General of Shanghai Municipal Council called to discuss the situation. The Chairman stated he desired that Mr. Fessenden report to both Sir John Brenan and me his interview with the Japanese Consul General on November 12. There were no new statements made but it was apparent that both the Chairman and Secretary General were more concerned in regard to local conditions that [than] he was led to believe yesterday. They regard conditions as exceedingly serious. They feel that a continuance of anti-Japanese demonstrations might easily lead to the Japanese usurping the Municipal Council’s functionings in Hongkew district as was done in 1932. Japanese police authorities have refused to give any information regarding the action of Nakayama prior to assault. His movements prior to assault are regarded as important by municipal police. Considerable [Page 416] exodus from Chapei to Settlement on 10th, some on the 11th, but discontinued on 12th. Personally visited the streets leading into the Settlement from the affected area at noon on 13th and considered conditions practically normal. Late afternoon exodus was resumed and during last night from 1,500 to 2,000 entered the Settlement from Chapei. The reasons for the renewal of this exodus are not apparent but are not surprising since Japanese are more numerous in Hongkew and bordering districts than previously and bear arms with fixed bayonets.
3.
Well-informed Japanese believe that the Japanese are no longer primarily interested in North China, but regard Central China as exceedingly important and believe that anti-Japanese acts are numerous and may lead to outbreak at any time. One such well known to Secretary General of Shanghai Municipal Council has informed him that conditions are so serious that an outbreak may occur at any time. Repeated to Embassy, Peiping and Nanking.
Cunningham
  1. Not printed.
  2. Stirling Fessenden, an American lawyer.
  3. H. E. Arnhold, British businessman.