USS Panay incident
The USS "Panay" incident on December 12, 1937, was a Japanese bombing attack on the U.S. Navy river gunboat and three Standard Oil Company tankers on the Yangtze River. They strafed survivors in the water. The boats were rescuing U.S. and Chinese civilians fleeing from Japanese invaders attacking Nanking (now spelled Nanjing), China. Japan and the United States were not at war at the time. Public outrage was loud in the U.S., but both sides were conciliatory and quickly settled the dispute. The Japanese claimed that they did not see the U.S. flags painted on the deck of the gunboat. Tokyo officially apologized, and paid a cash indemnity. The settlement mollified some of the U.S. anger, and newspapers called the matter closed.