John Gunther (1901-1970) was an American journalist, born in Chicago, who spent years as a foreign correspondent for his local newspaper, much of the time in Europe. As a result, he wrote a book called "Inside Europe" which was published in 1936 and was highly successful. Because of its good sales he decided to travel another continent and the result was "Inside Asia", published in 1939. He later did many other "inside" books - on the US, Australia, South America, Russia and Africa as well as writing biographies on two US presidents - Roosevelt and Eisenhower. The following is an excerpt from Inside Asia about Shanghai.


Shanghai This complex political ulcer on the face of China demands a brief section by itself. Shanghai, the sixth largest city in the world, with almost 4,000,000 population in 1939, is the chief mart of Chinese trade, a splendid refuge for tax-dodgers, and the seat of the worst slums, the most grisly factories, some of the handsomest country clubs, and the finest night life on earth. In Shanghai, I have already stated, 29,000 dead bodies are picked off the streets in an average year. And in Shanghai is a restaurant where dinner may cost $600.

The foreign area of Shanghai is uniquely governed. It is divided into two parts, the International Settlement (population 1,023,300) and the French Concession, which together occupy 12.66 square miles. Outside and beyond it, in a swarming semi-circle, is the great Chinese city (320 square miles), now occupied by the Japanese. The International Settlement is administered by a Municipal Council, which is responsible in turn to the Consuls General of the Great Powers. Until 1928, no Chinese were allowed on the Council; now it contains five Chinese out of fourteen, but they have little power. Two Councilors are Japanese-whicli brings complications. The Council is in effect run by the British; the Japanese want more voice. As to the French Concession (population 478,552) it is de facto if not de jure part of France. It has no connection with the International Settlement, and the French Consul General runs it-and runs it well. Most well-to-do foreigners in Shanghai (as well as many Chinese) live in "Frenchtown," as it is usually called.

British, American, Italian, and Japanese troops and police each have a sector of the International Settlement to protect. Beginning in 1932, the Japanese transformed their sector, Yangtzepoo, into what is in effect Japanese territory. They used it in the 1932 fighting as their seat of operations against the Chinese; they claimed both belligerent and extraterritorial privileges, and have entrenched their position ever since. While holding Yangtzepoo exactly as if it were Tokyo, they continue to demand a share in the government of the rest of the International Settlement. Once prompt action by an American Marine officer, Colonel C. V. Price, prevented Japanese invasion of the non-Japanese Settlement area. During 1938 and 1939, when Japanese puppets were murdered in extraordinary number by Chinese who took refuge there, Japan was again tempted to seize the Settlement. Revenge was not the only motive. Sixty percent of total Chinese industry is in Shanghai, 41.5 percent of China's total customs revenue accrues at Shanghai. But the Japanese did not quite dare to take the whole Settlement over, because of the storm of protest it would arouse in Britain and the United States.

Shanghai is, I have indicated above, a paradise for the wealthy. There are no tares. With the exception of an exceedingly small land tax foreigners pay no taxes at all, either to their own government, to the Settlement, or to China. This produces, inevitably, an emotion of shame, which produces worry; as Vincent Sheean once said, Shanghai is the city par excellence of two things, money and the fear of losing it. Some rich Shanghai families came originally from Bagdad and Bombay (with British nationality) and settled in China generations ago-the Hardoons, Fzras, Shamoons, Flis, Kadoories; some wealthy individuals settled there quite recently, like Sir Victor Sassoon. Several great Shanghai fortunes were based on opium; then came investment in land, in textiles, in native industry. Shanghai gas, waterworks, and local transportation are British; electricity, power, and the telephone system are American; much land is owned by foreign religious orders, like the French Jesuits, the Spanish Augustans. Shanghai real estate could be bought for a song fifty years ago. Land in the business district nowadays may be worth $1,500,000 per acre.

In Shanghai one finds most flamboyantly and conspicuously the westerner who hates the Chinese. He has done the Chinese an injury, that is, sucked wealth out of him; for this he cannot forgive China. In a Shanghai park was the famous sign, NO DOGS OR CHINESE ALLOWED. Some years ago an American newspaper man entertained no less a Chinese than H. H. Kung (now the prime minister!) in his office. The landlord would not allow Dr. Kung to enter the elevator reserved for whites; the American newspaper man protested; as a result the paper moved. Quite recently a British diplomat, a polo player, got into serious social difficulties because he invited a Chinese (the mayor of Shanghai!), to witness a polo match on the club grounds. With my own ears I have heard a high consular officer say to his secretary, in the presence of a well-dressed young Chinese, "Throw that damned Chink out." Many rich foreigners in Shanghai hope that the Japanese will win the war, not the Chinese.

Shanghai is also famous as the home par excellence of the Old China Hand. An Old China Hand is a white who has lived in China for thirty-five years without bothering to learn one word of Chinese.