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a million Mauser rifles for shipment to Singapore. Captain Tauscher did not endeavor to conceal that the rifles would doubtless be transshipped to China. He said that he was not able to provide such a quantity of Mauser rifles for immediate delivery but that he had come to Washington in an effort to obtain a like quantity of Springfields from the War Department. He said that he had found that the War Department did not have Springfields available but that it did have a considerable number of Lee-Enfields which could be declared surplus and sold. He added, however, that the War Department refused to do business with him until the State Department had approved the proposed transaction. I described to Captain Tauscher the long-standing policy of this Government prohibiting the sale by the Government of arms for export to foreign countries. I added that this policy had been expressly included in the latest War Department regulations in regard to the sale of surplus arms and that it was not my belief that the Secretary of State would wish to request the Secretary of War to ignore the regulations which he had promulgated and which were based on this traditional policy. I said, however, that I would bring his request to the attention of my superiors and would inform him if the Department had any comment to make in regard to this transaction.

On consulting the War Department informally, I found that it did have two million Lee-Enfield rifles of which it wished to dispose, but that it would, of course, be contrary to its regulations to sell them for export.

C[HARLES] W. Y[ost]

893.113/1668 The Consul General at Hong Kong (Southard) to the Secretary

of State

No. 54

HONG KONG, December 22, 1937.

[Received January 19, 1938.] SIR: I have the honor, in continuation of the Consulate General's previous despatches on the transit and transshipment of war materials at Hong Kong, to report that I have just been informed by Mr. H. S. Wu of Inter-Continent China, Limited, (this organization and its purposes were discussed in the Consulate General's Strictly Confidential No. 28 of December 2nd, 1937 89) that arrivals of airplanes via Hong Kong for the Chinese Government are increasing and that transshipment is keeping Inter-Continent China quite busy.

* Not printed.

Mr. Wu summarized outstanding orders placed by the Chinese Government on which deliveries are now beginning, at about 1000 planes from Russia, about 300 planes from France, and about 200 each from the United States, England and Germany. He claims that these planes have all been definitely contracted for and that complete delivery is expected within six months.

An arrangement must, says Mr. Wu, be made for trucking at least some of these planes from Hong Kong to Canton by highway because the railway cannot carry them all and the bigger ones (bombers) cannot be so loaded as to clear tunnels on the Kowloon-Canton Railway. He asserts that the highway from the frontier of the British Leased Territory to Canton is now ready for use. I asked him if arrangement had been made to set up any of the planes here in order that they might be flown into China. He replied that arrangements would soon, he thought, be completed with the local British authorities to permit the setting up within the Colony limits of any planes of British origin. They could then promptly go under their own power into China.

Considerable trouble is at this moment being experienced, said Mr. Wu, with five very large American bombers recently landed in Hong Kong which are too large for shipment on the Railway and for the setting up of which, within the Colony limits, permission has not yet been obtainable from the British authorities.

My informant further stated that about one hundred and twentyfive anti-aircraft guns intended for transshipment at Hong Kong have lately been taken over by the local authorities and installed here in connection with Colony anti-aircraft defenses. This office has lately made various reports on Hong Kong preparations against possible attacks from the air.

Mr. Wu cites these substantial orders for airplanes as first-class evidence of Chinese intention to continue indefinitely the fight against Japan. In reply to a question he stated that financial arrangements for the payment of the planes ordered had been completed, and mentioned the figure of 600,000,000 francs as the amount so far expended in France for the purpose. He admitted that there would probably be much difficulty in obtaining a sufficient number of trained pilots to man these planes, but was of the opinion that the training of Chinese pilots by American instructors was progressing and that several foreign pilots, from Europe and America, were under engagement for China. Very respectfully,

ADDISON E. SOUTHARD CHINA

MEASURES TAKEN BY THE UNITED STATES FOR THE PROTECTION

OF AMERICAN LIVES AND PROPERTY IN CHINA"

893.00/13872: Telegram

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

2

SHANGHAI, January 6, 1937—5 p. m.

[Received January 6–8 a. m.] 7. In view of renewed military activities with [at] Sian, I believe Military Attaché ? or his representative should return to Loyang to make and maintain contact with military with a view to obtaining protection for American citizens in Shensi and Kansu. Repeated to Peiping, to Nanking by mail.

JOHNSON

893.00/13880 : Telegram The Counselor of Embassy in China (Lockhart) to the Secretary

of State

3

PEIPING, January 8, 1937—6 p. m.

[Received January 8–10:40 a. m.] 13. Captain R. Scott, British military language officer, now in Sian and has telegraphed British Embassy here under date of January 6th that missionaries at Sian report no immediate danger and that Yang Hu Cheng : and Commanders 57th and 67th Armies guarantee safety of missionaries and will undertake to give facilities for evacuation if this should become necessary; that despite these assurances missionaries are apprehensive. Scott reports that situation obscure but that relations between local authorities and British and Americans are pleasant and that all is quiet on the surface; that Yang Hu Cheng and the northeastern armies are united in anti-Japanese front and that they will not fight Communists. Scott reports news from Kansu satisfactory.

* Continued from Foreign Relations, 1936, vol. IV, pp. 503–531. For correspondence after the outbreak of hostilities between Japan and China in July 1937, see ante, pp. 236 ff.

· Col. Joseph W. Stilwell.
*Pacification Commissioner for Shensi.

Captain Barrett - leaving tonight for Loyang. No train last night.

Repeated to Nanking, Shanghai and Hankow. Code text by mail to Tokyo.

LOCKHART

893.00/13885 : Telegram

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

NANKING, January 9, 1937—10 a. m.

[Received 3:50 p. m.] 8. My 1 [%], January 7, 4 p. m. On January 7, information was received from Reuter's office in Nanking that possible necessity for the Government to use force in compelling Yang Hu Cheng to comply with personnel changes and troop transfers decreed on January 5 was being seriously considered and suitable southwesterly directions of Government troops were being made. The increased likelihood thus indicated that American citizens in Sian might be subject to the danger of an attack on Sian increased the anxiety felt by the Embassy on their behalf and I called on Vice Minister Hsu Mo in the afternoon and reiterated request made in my note on December 24 that instructions be issued to military and frontier officials concerned to take all possible measures for the safety of Americans in Sian. The German Embassy courteously informed me that an opportunity to send a communication to the Americans in Sian was presented by the departure of a German pilot for Sian by a German plane on the morning of January 9. A letter in guarded terms addressed to the Scandinavian Alliance Mission was therefore entrusted to the German Embassy. In the letter it was suggested that if the addressee regarded it as prudent an attempt be made to send a reply by the same agency reporting on their situation. No reply has been received to the telegram sent to Swenson' by Chinese telegraph on January 7. Sent to the Department, Peiping, Hankow, Shanghai.

JOHNSON

893.00/13884 : Telegram The Counselor of Embassy in China (Lockhart) to the Secretary

of State

PEIPING, January 9, 1937–4 p. m.

[Received January 9–6:44 a. m.] 15. My 13, January 8, 6 p. m. British Embassy here has received

6 a telegram from Captain Scott at Sian stating that the evacuation of some 40 foreigners, mainly women and children, of whom about 30 British, others including Americans, is "required” and that road is difficult. He suggests evacuation by air and is taking up matter with authorities at Sian.

4 Capt. David D. Barrett, Assistant Military Attaché in China. 5 Vol. III, p. 12. 6 Not found in Department files. ? Herman Swenson, American citizen, with the Scandinavian Alliance Mission.

British Embassy officials here state that Scott's request has been referred to its Embassy at Nanking for action, with the suggestion that it cooperate with the American Embassy there in making arrangements to evacuate foreigners at Sian by air. British Military Attaché is leaving for Loyang tomorrow morning by air. Repeated to Nanking, Hankow and Shanghai.

LOCKHART

893.00/18886: Telegram The Ambassador in China (Johnson) to the Secretary of State

NANKING, January 9, 1937–5 p. m.

[Received January 9–2:50 p. m.] 11. Peiping's 13, January 8, 6 p. m. The British Embassy received yesterday a later telegram from an officer of that Embassy now in Sian recommending that British and American residents be evacuated. The British Counselor representing the British Ambassador and I called on Vice Minister Hsu Mo January 9, 4 p. m. and asked that the Ministry of Foreign Affairs make arrangements for the evacuation of our respective nationals by air, motor car or railway. He replied that the Ministry would take the matter up with the military authorities. He said, however, that the Ministry had telegraphed to General Yang Hu Cheng asking that he make arrangements to receive an official of the German Embassy who wished to enter Sian to arrange for the evacuation of German nationals and that a reply had been received from General Yang saying that the German residents were safe and there was no necessity for the coming of the German official. We nevertheless adhered to our view that British and American residents should be evacuated and that it was incumbent on the Chinese authorities to arrange this. Interview ended with assurance from the Vice Minister that he would do his best to meet our desires and would inform us of the result. Repeated to Peiping, Shanghai and Hankow.

JOHNSON

893.00/13888: Telegram The Ambassador in China (Johnson) to the Secretary of State

NANKING, January 11, 1937—1 p.m.

[Received January 11—6:30 a. m.] 12. Vice Minister Hsu Mo telephoned to say that Foreign Office had telegraphed to Yang Hu Cheng asking him to make arrangements for

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