394.115 Panay/199: Telegram
The Commander in Chief of the United States Asiatic Fleet (Yarnell) to the Secretary of State
[Received December 26—7 a.m.]
0026. On 24th, General Matsui56 called to express regrets over Panay sinking. As he is senior to me, call was probably directed from Tokyo. Call was returned yesterday.
Discussed with him present conditions in Shanghai due to restrictions imposed by Japanese Army, and gave him letter with enclosures giving many details of restrictions and hardships imposed. General stated that it was his desire to remove restrictions as soon as possible but care had to be taken to prevent entry of Communists, spies, etc., into Japanese areas. Had conference with Admiral Hasegawa 3 days ago on same subject. Letter to General Matsui read as follows:
“Shanghai, China, 24 December, 1937.
My Dear General: As a result of the hostilities that have been carried on in Shanghai and the Yangtze Valley for the past 4 months there has arisen a situation that has become critical for the population and the neutral business interests which sustain the life of the city.
It is a situation that demands frank statement and discussion. As you are a soldier, I am sure you would prefer that the matter be handled in that manner.
The Japanese Government has officially and repeatedly stated that it will respect foreign rights and properties in China. The restrictions that were placed into effect at the beginning of hostilities and still govern, regardless of statements to the contrary, lead one to doubt the sincerity of the above statement.
Only yesterday I was called on by an American to assist him in obtaining goods from godowns in Hongkew and Yangtzepoo which are vitally necessary in his business and which he had been trying for 4 months to obtain without success.
I have heard well founded rumors that policemen and sentries refused to honor passes issued by responsible Japanese officials for the entry into Hongkew and the removal of goods therefrom.
Commercial firms are restricted or entirely prevented from carrying on their normal operations in industrial and warehouse areas, such as Yangtzepoo, Point Island, and Pootung. A great apartment house stands empty within a stone’s throw of Garden Bridge.
Residents are not allowed free access to their homes in residential areas such as Hongkew and the Settlement roads north and west of the International Settlement except under such onerous restrictions as to make living in these areas impossible.
Actual fighting ceased in the Hongkew and Chapei areas nearly 2 months ago but the restrictions still continue.
It is known that looting of properties in Hongkew, Yangtzepoo, and the residential areas west of the city has taken place, yet owners [Page 417] are denied the right to occupy their properties or place proper guards over them.
I am enclosing copies of memoranda from the American, British, French, and Italian representatives in Shanghai and the Shanghai Municipal Council, which show the extent to which the intolerable conditions I have before pointed out prevail. These lists give many instances of neutral vessels seized without any warning or right other than of armed force, of denial of owners to their lawful property, of looting, denial of owners to enter their own homes and so on. These lists merit very serious consideration.
With reference to the city government of Shanghai, it is now carrying on under a tremendous burden. Revenues have diminished greatly, rendering the financial situation and the continuance of the necessary municipal activities difficult.
The city is crowded with hundreds of thousands of homeless refugees who must be fed and housed. The financial problem in connection with this work is a very great one. Many people of the Settlement and French Concession are devoting their entire time and energies to the solution of this great problem.
The attitude of Japanese soldiery towards Chinese non-combatants has produced a state of terror which prevents their return to their homes and farms. Your own proclamations state that the Japanese Army has no enmity towards the Chinese people. If the Chinese people could be convinced of the sincerity of these proclamations they might be induced to return to their homes.
The great problem confronting the people of Shanghai is whether its commerce is to continue to be strangled to a point where the business community that has made it one of the great ports of the world will be driven out of existence. The present situation is none of their seeking. These interests have suffered tremendous losses through fire, destruction, and the suspension of all business. The question now is how much longer this loss can continue without the final destruction of the city as a commercial port.
I have heard it stated that the real Japanese policy is to drive out of Shanghai all commercial interests except their own. This I cannot believe, since it is directly contrary to the repeated statements of the Japanese Government.
The people of Shanghai thoroughly appreciate and understand that the overwhelming force of the Japanese Army in the Shanghai area makes it possible for you to put into effect such decrees or regulations as you may desire. It did not require a march through the Settlement to impress that fact upon the neutral population.
But with power should go a scrupulous regard for the rights of innocent people. This is generally well realized by men of military training, for they know what misery and suffering that can be caused by the ruthless exercise of power unrestrained by an [any?] consideration for neutrals or non-combatants.
I request your earnest consideration of the contents of this letter and enclosures and would appreciate an early reply, with a statement of your policy regarding the points raised herein.
I am, very sincerely yours, H. E. Yarnell, Admiral United States Navy, Commander-in-Chief United States Asiatic Fleet.”
- Japanese military Commander in Chief in Yangtze area.↩