893.50/10–148: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received October 1—5:20 a.m.]
2113. Extension of jurisdiction of Shanghai Economic Supervisor’s Office to include Nanking, Kiangsu, Chekiang and Anhwei appears tantamount to adoption of “total warfare program” to this area. Previously program used only in war areas. Extension should permit Supervisor to control source of Shanghai supplies of food and raw materials which recently have failed to reach here. Also flight of local hoardings to surrounding areas will now come under young Chiang’s purview.
[Page 416]Some fears have been allayed by statement of Communist Suppression and National Reconstruction Corps Commander that Corps is not court or police organization and will only “encourage people to help Government carry out emergency economic measures”.
Postponement of currency conversion deadline from today to October 31 for gold and foreign currencies, and November 30 for silver will permit concentration of police searches on godowns.
Deadline for registration of Chinese-held foreign assets set for November 1. Those registering will not be questioned as to source of assets.
Sent Department; repeated Nanking 1613.