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A formal protest was immediately lodged by the American ambassador. The Japanese government accepted responsibility, but insisted the attack was unintentional. They claimed that the pilots could not distinguish between Chinese and American flags from the distance of 300 or more yards that the pilots attacked. A large indemnity was paid (approximately $2,000,000) on 22 April 1938 and the incident officially settled. However, further deterioration of relations between Japan and the United States continued.
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