893.00/11–1248: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received November 12—3:41 a.m.]
2184. ReEmbtel 2183, November 12 and Deptel 1577, November 9, 6 p.m. Washington, London and Paris news stories published yesterday on the alleged discussion between Secretary State and Chinese Foreign Minister appear to us to be an extension of previous reports along same line and to be designed in part, at least, to firm up public morale with the idea that, bad as present conditions are, they are not hopeless because American aid is coming. Also involved, of course, are Chinese self delusion and the desire to put us in position where it would be committed to further aid.
Y. T. Tsur, Minister of Health, this morning informed Ministry employees that current panic among Chinese is totally unwarranted. He said Generalissimo had told him personally that there is neither any immediate threat to Nanking nor any remote possibility thereof. The Generalissimo added he had categoric assurances from US of $900 million loan and that large scale rice purchases abroad would soon solve food crisis.
In order to forestall additional unfortunate speculation, Embassy suggest Department may wish to consider putting out some kind of public statement.