On 6 January 1938, Augusta departed Shanghai for the Philippines, for her yearly overhaul period. Admiral Yarnell however, his presence in China deemed necessary to uphold American prestige in the Orient, remained in Shanghai with a token staff on board Isabel. He ultimately rejoined Augusta when she returned to Shanghai on 9 April 1938, after her yearly overhaul.

Proceeding north along the China coast, Augusta visited Tsingtao (12 to 13 May) and Chefoo (14 May) before she arrived at Chinwangtao on 15 May. There, Admiral Yarnell disembarked and entrained for Tientsin and Peking, inspecting the marine detachments in both places before ultimately returning to Chinwangtao to re-embark in his flagship on 29 May. Proceeding thence via Chefoo Augusta reached Shanghai on 6 June, the CinCAF transferred his flag to Isabel on 23 June, and sailed for Nanking and Wuhu, returning to Shanghai and Augusta on 27 June.

Returning to Tsingtao on 3 July 1938, Augusta operated in North China waters, between Tsingtao and Chinwangtao, for the remainder of the summer and through early October. Sailing for Shanghai on 10 October, the cruiser arrived at her destination two days later, and remained there through Christmas. She sailed again for the Philippines on 27 December 1938, once again Admiral Yarnell remained in Shanghai with his flag in Isabel.

• U.S.S. Augusta under fire : Sino-Japanese incident, 1937-1938, Shanghai, China. Editors: Clad Elmer Polley and Myron Oman Hill. Publisher: [Shanghai : North China Daily News, 1938] (Navy Dept. Library )