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the telegram under reference and it is reliably estimated that all stocks of such silver will have left Hong Kong by January 15th.

During the past 6 weeks Chinese Government silver to the value of approximately 20 million Hong Kong dollars has arrived in Hong Kong.

Repeated to the Ambassador at Hankow.



893.48/1196a: Telegram

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

WASHINGTON, September 17, 1937-noon.

374. Reference various telegrams and press reports indicating need at Shanghai of medical supplies and related equipment. Could you indicate confidentially for Department's information and consideration what assistance this Government might render, by Department's enlisting cooperation of Red Cross, Navy and Army, toward facilitating prompt receipt by American agencies at Shanghai of materials which may be most urgently needed and most difficult to obtain for prevention of disease, caring for sick and injured refugees, etc.

In making this inquiry, Department has in mind possible supplementing by American governmental agencies of efforts of the local American committee to obtain such supplies but not large-scale contribution toward general relief work.

An early reply even though not complete would be most helpful.


893.48/1198: Telegram

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

NANKING, September 18, 1937—1 p. m. [Received 1:10 p. m.] 676. 1. Following letter dated today received from Doctor J. Heng Liu, [director of] Health and Medical Services:

"On behalf of the people of China and of the Chinese National Red Cross Society, I have the honor to draw your attention to the need which now exists in this country for medical supplies of all kinds, for use among the refugees and the wounded and sick soldiers, and to request that you be so kind as to make a formal appeal to your Government and to the charitable organizations in your country, such as your National Red Cross Society, to send a donation of such supplies to China.

Further, in consequence of the war, it has been found that there are not sufficient skilled surgeons for the treatment of the wounded, and the despatch of fully-equipped medical missions to China, composed of such surgeons, would be very highly appreciated.

Practically all the available reserve stock of medical supplies on the market has been exhausted, and the need is now a pressing one. As you know, epidemics of cholera, dysentery and typhoid have broken out among the refugees, white plague is spreading in Fukien, threatening the adjoining provinces. Wounded and sick civilians and soldiers are pouring into our hopsitals, and there the serious shortage of medical supplies is felt.

I can personally assure Your Excellency that any help, in money, in the despatch of medical missions, or in supplies which the Government of [or] the charitable institutions of your country may care to grant to our Red Cross work in the name of humanity will be most gratefully welcome, and in view of the urgency of the matter I take the liberty of suggesting that you might wish to telegraph this appeal to your Government. In particular, in the way of supplies, China is in great need of anesthetics, antiseptics, anodynes, suturing materials, and surgical instruments, including standard army sets.

In view of the blockade now existing on China's coast, it is recommended that any donations should be addressed to: The Bureau of the Chinese National Red Cross Society, Hong Kong, from whence they will be distributed to the proper quarters.["]

Sent Department only.



Memorandum by the Adviser on Political Relations (Hornbeck) to the Chief of the Division of Far Eastern Affairs (Hamilton)

[WASHINGTON,] September 18, 1937. MR. HAMILTON: The question of possible assistance by American governmental agencies toward promptly supplying to appropriate agencies at Shanghai urgently needed medical supplies and incidental equipment has been discussed by me with Mr. Swift 10 of the Red Cross, General Spalding " of the Army, and Admiral Leahy 12 and Dr. Sutton 13 of the Navy.


The feature that I have emphasized has been that these agencies might have available or might be able more readily than most agencies to obtain supplies which might be sent expeditiously; that the Army and the Navy, with establishments at Honolulu and Manila, and with


Ernest J. Swift, vice chairman in charge of insular and foreign operations, American National Red Cross.

"Brig. Gen. George R. Spalding, Assistant Chief of Staff G-4 (Supply), War Department.



Admiral William D. Leahy, Chief of Naval Operations, Navy Department.

Capt. Dallas G. Sutton, Medical Corps, Assistant to the Chief of the Bureau of Medicine and Surgery, Navy Department.

facilities of transportation, might be able to make delivery more promptly than could be made through ordinary agencies; and that a practical feature in the nature of emergency assistance, at this time, by American governmental agencies, in such a connection as this, might have a beneficial political and psychological effect upon the minds not only of the people (of various nationalities) to whose welfare such action might contribute but upon the minds of the American community in China, of the Chinese, of our own people in this country, and in many quarters where that type of action is highly rated.

Mr. Swift, General Spalding, Admiral Leahy and Dr. Sutton were all very responsive. Mr. Swift would help with regard to ways and means; the Army and the Navy would do what they can (although they seem not to have any considerable quantities of available surplus of medical supplies).

My thought is that, when we hear from Gauss, if he gives us information on the basis of which action on this line seems called for and worth doing, a conference should be called and, thereafter, a memorandum should be drafted making concrete recommendations to be passed upon by the Secretary and to be presented to the President. It should be proposed that the President ask Admiral Grayson 14 and the Army and the Navy to collaborate toward there being assembled and being expedited toward China with the utmost promptness a consignment of supplies designed to meet such need as may be indicated in Gauss' telegram. As soon as the plans are perfected, information thereof should be telegraphed to Shanghai and maximum publicity should be given to the enterprise.


893.48/1202 : Telegram

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

SHANGHAI, September 20, 1937-4 p. m. [Received September 21-5 a. m.]

735. Red Cross Society of China invited a number of foreign residents to a meeting on 18th September for announced purpose of establishing at Shanghai a regional committee on Chinese and foreigners. I am informed that the proposals discussed would have left the foreign participation without any substantial influence or supervision over the funds from foreign sources. It was therefore pointed out that a representative of the International Red Cross Committee was represented to be en route to Shanghai and that the matter should be studied here by a small group before action is taken.


Rear Adm. Cary T. Grayson (retired), Chairman of the American National Red Cross.

2. While I am unable on account of pressure of official business to take any active part foreign [in this?] matter, I am in close touch with responsible interested Americans who have consulted me. I hold the view which they share that in preference to direct foreign association with the Chinese Red Cross it would be desirable to establish either an international or an American advisory committee or auxiliary which might be entrusted with the allocation of funds under suitable guarantees and which might also give assistance to the Chinese Red Cross in those activities which are considered worthy of support. 3. I would be glad if the foregoing might be put before Admiral Grayson and his views obtained as to the desirability of directing American support to some form of advisory committee or auxiliary, either American or international. It would also be helpful to know the name of the International Red Cross Committee representative en route to Shanghai, when he will arrive, and for my confidential information whether we should be guided by him in determining the form of foreign participation or assistance in the Red Cross organization for this area.


893.48/1201: Telegram

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

SHANGHAI, September 20, 1937-5 p. m. [Received 6:47 p. m.]

736. Reference your 374, September 17, noon, concerning medical supplies and related equipment. Preliminary inquiries show no important shortages amongst American agencies at the moment. After much negotiation we were able to effect removal from north of creek of considerable reserve supplies of an American company. Matter is being borne in mind for later report should shortages develop.


893.48/1213a: Telegram

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

WASHINGTON, September 29, 1937–5 p. m. 279. Admiral Grayson, Chairman of the American Red Cross, has asked the Department of State to inform you that the Red Cross has appropriated $100,000 to be used for medical and hospital supplies and services in the Far East and that the Red Cross would be gratified if, after consultation with Admiral Yarnell,15 Consul General Gauss, Colonel Watteville of the International Red Cross Committee, and

15 Commander in Chief, U. S. Asiatic Fleet.

other interested and informed persons, you would radio suggestions and recommendations on how $50,000 of these funds may best be employed to accomplish the maximum service to those in need of medical care.

Admiral Grayson would also appreciate your specific recommendation for the allocation of the above-mentioned $50,000 to hospitals and committees taking into consideration such requests as the American Episcopal St. Luke's Hospital presented by Commercial Attaché Arnold in his radiogram of September 15 16 and the statement of the Mayor of Canton, as reported by the Consul General there in his telegram of September 28, 3 p. m.,16 that foreign medical supplies and services would be welcome.

In connection with the appeal of Dr. J. Heng Liu on behalf of the Chinese National Red Cross Society forwarded in your telegram No. 676 of September 18, 1 p. m., it is the intention of Admiral Grayson, if you approve, to purchase and ship to the Chinese Red Cross medical supplies to cost approximately $20,000. If you believe this should be done, could you obtain and radio at the earliest possible moment an itemized list of supplies most urgently needed. With such a list it is believed that an early shipment could be made from Manila or some other nearby point.

It is Admiral Grayson's hope that you will find it practicable to bring into your consultation with reference to the allotment of funds as mentioned above our various governmental representatives who are active in the present situation.

The Department realizes that you will probably wish to ask Gauss to handle those aspects of the matter which relate to Shanghai and that you may wish to consult Canton and possibly other offices.

Please give this matter urgent attention and reply as soon as possible.


893.48/1213: Telegram

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

WASHINGTON, September 29, 1937-5 p. m. 430. Your 735, September 20, 4 p. m. Following from the Vice Chairman of the American Red Cross:

"Acknowledgment is made of your letter of September 22nd 16 enclosing a telegram dated September 20th from the American Consul General at Shanghai, raising certain questions as to relief organization in China. The telegram is most interesting and we are glad to have it.

16 Not printed.

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