Panay incident
The Panay incident refers to the attack on the U.S. gunboat Panay by Japanese naval aircraft on December 12, 1937, during the escalating tensions of the Second Sino-Japanese War. The Panay was engaged in evacuating American diplomats and citizens from Nanjing as Japanese forces advanced, and it was part of the Yangtze Patrol, which aimed to safeguard American interests in China. Despite displaying prominent American flags and having informed Japanese authorities of its location, the Panay was mistakenly attacked, leading to its sinking and subsequent machine-gunning by a Japanese vessel.
The Japanese government initially claimed the attack was accidental, but evidence suggested otherwise. In response, U.S. President Franklin D. Roosevelt demanded an official apology and restitution, which Japan ultimately provided, amounting to over $2.2 million. While the incident did not trigger an immediate military conflict between the U.S. and Japan, it significantly influenced American public opinion against Japan and contributed to a shift in U.S. policy towards increased military preparedness leading up to World War II. The Panay incident is a pivotal moment in pre-war history, illustrating the complexities of international relations in a time of emerging global conflict.
Panay incident
The Event Japanese attack on a U.S. gunboat
Date December 12, 1937
Place Chang River (also known as Yangtze River), China
The gunboat Panay had evacuated Americans from Nanjing (Nanking) as the Japanese surrounded the city. Anchored 27 miles upriver from Nanjing, the gunboat was sunk by Japanese aircraft, killing three and wounding forty-three. This incident further strained relations between Japan and the United States.
The Japanese launched the second Sino-Japanese War in July, 1937, and quickly captured the cities of Beijing and Shanghai. As the Japanese forces closed in on Nanjing, the U.S. gunboat Panay evacuated the embassy staff and American citizens. The Panay was a part of the Yangtze Patrol, a group of gunboats specifically designed to protect American businessmen and missionaries along the river. The Americans boarded the Panay on December 11, and the gunboat moved upriver to avoid the fighting between Chinese and Japanese forces. The Japanese command was notified of the boat’s new location. The Panay had three large American flags prominently displayed and lighted at night to prevent being mistaken for a Chinese vessel.

In spite of these precautions, Japanese naval aircraft attacked and sank the Panay. The Panay was also machine-gunned by a surface vessel. The Japanese high command insisted that the attack was an accident, that the Panay had been mistaken for a Chinese vessel. The evidence suggested otherwise.
President Franklin D. Roosevelt reacted by demanding an official apology and full restitution from the Japanese government. Roosevelt briefly considered ordering a naval response, but the American public opposed any military action. Almost immediately after the attack, the Imperial navy offered an apology for the event. The official Japanese government apology was not received until Christmas Day. The Japanese agreed to full restitution in the amount of more than $2.2 million.
Impact
While the Panay incident did not directly result in war between Japan and the United States, as the details of the attack became known, American public opinion turned against the Japanese and the isolationist faction in the United States. The incident indirectly led to support for increasing wartime preparations, such as the passage of the Vinson-Trammell Naval Bill in May of 1938, the largest naval appropriation bill ever passed to that time.
Bibliography
Bond, W. Langhorn. Wings for an Embattled China. Bethlehem, Pa.: Lehigh University Press, 2001.
Hixson, Walter L. The American Experience in World War II. New York: Routledge, 2003.
Icenhower, Joseph B. The Panay Incident. New York: Franklin Watts, 1971.
Koginos, Manny T. The Panay Incident: Prelude to War. West Lafayette, Ind.: Purdue University Press, 1967.