793.94/9305: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received August 12—9:59 a.m.]
458. My No. 454, August 12, 3 p.m. At meeting Joint Commission, Japanese Consul General charged, and Chinese Mayor admitted that units of Chinese Regular Army have arrived at Shanghai and are occupying Haskell Road immediately adjoining northern boundary of Settlement. Chinese delegate maintained Chinese forces entered area because of heavy Japanese naval concentration. He alleged 1932 truce agreement was violated by Japanese Consulate about a year ago when they sent a small detachment to Japanese property outside Settlement [Page 387] and extra-Settlement Roads. Up to the present time Japanese have remained in their barracks and taken up no defensive positions. Japanese delegate announced that unless some arrangement could be made Japanese must take defensive positions without further delay. Effort was made to avoid possible clash by mutual withdrawal. Effort failed, but Chinese and Japanese delegates undertook to approach their commanders to ask them not to attack unless attacked. Italian delegate suggested that neutral forces be [sent?] into this dangerous sector but he has only a handful of sailors. Situation is acute and dangerous. Mayor admitted he and local garrison commander have no control over the Chinese troops of 88th Division arriving in the area. Their commander is somewhere in the rear.
2. I recommend that Ambassadors at Nanking make urgent representations to the Chinese Government to avoid a clash pending diplomatic settlement, and at the same time endeavor to obtain undertaking that Chinese troops will under all circumstances respect the area of the Settlement south of Soochow Creek as a neutral area of refuge which they will not seek to enter. If such an undertaking can be had we can endeavor to localize any clash in the northern area of the Settlement as in 1932.
3. Warning Americans to evacuate from threatened section of northern area immediately.
Repeated to Nanking.