893.111/437: Telegram
The Consul General at Shanghai (Gauss) to the Secretary of State
[Received February 15—1:10 p.m.]
125. Relaxing of restrictions north of Soochow Creek. The Senior Consul has circulated a letter dated February 13 from the Japanese Consul General which reads in part as follows:
“Naval authorities have decided to abolish certain restrictions on passenger traffic which have been in force in the area under the control of the Japanese Navy at Shanghai. As from February 15, 1940 passes will no longer be required within the same area either from individuals or groups, both pedestrians and passengers in vehicles, regardless of their nationality.
[Page 729]Sentries will continue to be posted at certain points, who will examine or search the Chinese passengers and their belongings at any time and place that may be deemed necessary. The permit systems for transportation of goods into or out of the area and rehabilitation of Chinese residents in the above area will remain unaffected.”
The above mentioned modifications are believed to be connected with the intimation given by the Japanese Consul General (see my 94, February 3, 1 p.m.) that the understanding already reached regarding restoration of Settlement police control in the prescribed areas would be implemented following the signing of the modus vivendi concerning the extra-Settlement roads; the latter agreement will probably be signed within the next few days.
The relaxing of restrictions north of Soochow Creek is felt to be a step in the right direction but the fact that Chinese desiring to reside in the areas mentioned must still obtain residence certificates from the Japanese authorities and that Japanese sentries will remain on the Soochow Creek bridges would appear to indicate that the Japanese do not at present intend to permit the Council to exercise full control over the northern areas.
Repeated to Peiping and Chungking. Air mail to Tokyo.