811.5034 China/417

The Ambassador in China (Johnson) to the Secretary of State

No. 1215

Sir: I have the honor to refer to the Embassy’s confidential despatch No. 1158 of March 26, 1937, in regard to attempts to use the American flag to cover Communist propaganda in Shanghai, and to enclose for the information and files of the Department copies of Shanghai’s confidential despatch to the Embassy No. 774 of April 27, 1937,40 concerning the American Book and Supply Company, Shanghai.

[Page 694]

Mr. Gauss reports that on March 1, 1937, an official of the Municipality of Greater Shanghai (Chinese) called at the Consulate General and made complaint against the American Book and Supply Company, stating that it imports a Communist newspaper from Paris printed in Chinese and distributes it in the International Settlement of Shanghai. This oral complaint was followed by a written complaint from the Mayor, dated March 8. Mr. Gauss informed the Mayor in his reply of April 27 that it had been ascertained upon investigation that this firm was not an American concern and there was, therefore, no action that the Consulate General could take in regard to the complaint of the Chinese authorities.

The Embassy has informed Mr. Gauss that it approves the action taken by him.

Respectfully yours,

For the Ambassador:
Frank P. Lockhart

Counselor of Embassy
  1. Not printed.