893.00/11–2948: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

2567. After discussion regarding possibility transfer of power in Shanghai (mytel 1933 to Nanking, repeated Department 256668), Mayor Wu69 commented extensively on our China policy. He said he felt it was vital to our national security to keep the “flame of democracy” alive in China. When I pointed out many people doubted that present Government could win against Communists regardless of amount of aid we furnished, he said he fully agreed and added that Government was now detested by great majority of people. He said we could be greatly mistaken, however, if we thought we could do business with Communists and mentioned Chinese knew that liquidation had already started in Tsinan. He then suggested 4-point plan and said that in view gravity of situation US should demand its fulfillment [Page 611] threatening [no?] aid otherwise. I pointed out gravity of interference in Chinese internal affairs. Program follows:

(1)
Generalissimo should remain head of Government but surrender all real power.
(2)
Responsible cabinet should be formed representing all non-Communist elements in China and should assume responsibility for war against Communists.
(3)
US supreme military adviser should be appointed in effect to run Chinese armies and should be furnished with massive shipment of arms and munitions.
(4)
Primarily to stiffen soldiers’ morale, US should lend 250 million ounces of silver to China to pay soldiers. Mayor Wu pointed out that such a cabinet could make clear to Chinese people that this was a war against foreign imperialism.

I said that deeply moved as I was by plight of China I could only report what he had said to Washington.

Sent Nanking 1934, repeated Department 2567.

Cabot
  1. November 29, 6 p. m., vol. viii , “Proposed International Police Force”.
  2. K. C. Wu, mayor of Shanghai.