893.00/3–447: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received March 4—3:30 a.m.]
440. Following from Shanghai:
“361, March 1, 11 a.m. Following comments on local reaction to national political developments are submitted as of possible interest. There has recently been a further deterioration of public confidence in the National Government. Local independent Chinese businessmen, bankers and other private individuals have become much more frank and bold in their criticism of the National Government. The same is true of the labor and salaried worker groups who have been further alienated by recent wage freeze without simultaneous price control. Chairman of general labor union (Kmt1 sponsored) has publicly expressed fear that labor may voice its dissatisfaction “in a drastic manner”. Present temper of public opinion is such that any active opposition to governmental measures to control economic or political activities of the people would receive considerable popular support.
“It is reported that the local authorities plan to suppress by force, if necessary, any demonstration or illegal strike, but reliability of police in putting down disturbances is questioned. Although possibility exists that disturbance may occur at any time, it is Consulate General’s view that some weeks will elapse before situation develops fully. Modification of present measures and realistic reorganization [Page 54] of National Government if it comes in time may substantially alter situation.
“There is a noticeable lessening of anti-American element in situation.”
- Kuomintang.↩