393.1115/11–3048
Memorandum of Conversation, by the Assistant Chief of the Division of Chinese Affairs (Freeman)
| Participants: | Mr. John Kopelman, Vice President, Shanghai Power Company |
| Mr. Butterworth, FE | |
| Mr. Freeman, CA |
Mr. Kopelman called this afternoon to discuss questions regarding the evacuation of American citizens from Shanghai with specific [Page 904] reference to the employees of the Shanghai Power Company. He indicated that Mr. Paul Hopkins, president of the company and presently in Shanghai, was apparently becoming concerned over the fate of his employees in the event of Communist occupation and desired to evacuate all Americans in the company prior to such occupation. Mr. Kopelman implied that much of Mr. Hopkins’ concern was based on the absence of a definitive U. S. Government position to be taken in the event of a collapse of National Government authority in Shanghai and the establishment of a Communist or Communist-dominated government there.
Mr. Butterworth reviewed briefly the facts regarding evacuation of U. S. nationals from China, emphasizing (1) that only those nationals were being urged to withdraw who had no compelling reasons to remain; (2) that no change is contemplated in the continuing functioning of our consular establishments, indicating by hypothesis that American missionary and business establishments might decide to do likewise; and (3) that dependents of consular personnel are not being ordered to evacuate although travel is being authorized for the dependents of those officers and employees who so desire.
For Mr. Kopelman’s confidential background information, Mr. Butterworth explained that the Department could not advise American businessmen and missionaries to remain in China, thus incurring a share of responsibility for any untoward results, but that on the other hand it was not desirable to urge American representatives of U. S. organizations having considerable interests and stake in China to evacuate, leaving those interests without representation. Also for background information, Mr. Butterworth expressed his personal view that the period of great danger in Shanghai is likely to occur following a breakdown of civil authority and prior to the establishment of any new regime—rather than as a result of occupation by the Communists. In this connection, Mr. Butterworth stated that apparently a large number of Americans in Shanghai are being dominated in their thinking with regard to the present situation by their experiences in 1941 following Pearl Harbor. He emphasized that the two situations are in no way parallel: that while in 1941 there was the imminent threat of international war involving the U. S., the situation existing today is one of civil strife within China with no threat of war for the U. S. Mr. Butterworth indicated that he had supposed that the majority of essential American businessmen and missionaries with many years of experience in China would adopt the traditional attitude of “sitting out” changes in the governmental structure.
Mr. Kopelman indicated his understanding of and general agreement with Mr. Butterworth’s statements. He said, however, that in the case of the Shanghai Power Company there was a real question [Page 905] whether fuel would continue to be available for operating the power plant. He stated that the coal supply was critical and that oil was being used predominantly, but he felt that there was no assurance that oil imports would continue in the event that Shanghai was occupied by the Communists. Mr. Butterworth said that he could give no indication as to what attitude the U. S. might adopt with regard to trade relations with Communist areas in China—since that decision had not yet been made—but he mentioned the fact that trade between the U. S. and Communist countries of Europe was taking place.
Mr. Kopelman assured Mr. Butterworth that he would consider this conversation as of a confidential and background nature and that he would communicate the pertinent portions to Mr. Hopkins in Shanghai requesting that essential personnel of the power company be retained on an indefinite basis.