793.94/11814: Telegram

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

1234. Reference my No. 1121 December 24, 9 a.m., to the Department regarding Japanese restrictions on residence and trade at Shanghai. Japanese Consul General told me last evening and it has [Page 419] now been announced in the press that all areas north of Soochow Creek including extra-Settlement area and Chapei are to be reopened for foreign residence and business commencing today.

Japanese Consul General also told me last evening that the Hungjao residence area will also be reopened shortly but that the foreign forces must first agree to withdraw their defense lines along the perimeter and Chinese police force under Japanese officers will take control in all areas outside the Settlement formerly under Chinese jurisdiction although as heretofore the municipal police will do everything possible to patrol the extra-Settlement roads.

Repeated to Tokyo, Hankow and Peiping.

Gauss