Foreign Relations of the United States, 1948, The Far East: China, Volume VIII

893.00/12–1048: Telegram

The Consul General at Tientsin (Smyth) to the Secretary of State

Tientsin, December 10, 1948—4 p.m.
[Received December 10—5:30 a.m.]

426. ReEmbtel 226, November 30, repeated Department 2360. Substance Embtel conveyed to American businessmen concerned including Hodes, President Tientsin American Chamber Commerce.

With regard question possible increased military aid to National Government, Hodes commented that American businessmen in Tientsin are strongly opposed to extension of further American military aid to National Government.

Hodes said feeling of American businessmen here may be stated as follows: Previous US aid programs to Generalissimo’s government here have been misused and in particular much American military aid, because of Government military incompetence and low troop morale, has fallen into Communist hands. There is no reason to believe future military aid would be used any more effectively. Generalissimo’s Government has lost confidence of Chinese people and continued military aid to Generalissimo’s Government will arouse increasing resentment among non-Communist Chinese. Chinese faith in Generalissimo’s Government has been destroyed by Government’s military, political and economic incompetence and corruption.

With regard to Tientsin Chamber Commerce recommendation, contained in its memorandum of July 12 addressed to Mr. Lapham, that American military aid be given Fu Tso-yi in North China, Hodes said American businessmen now feel that, in view of Government debacle in Manchuria and Government defeats elsewhere, it is too late for such aid to be effective. (Copy of memo enclosed with ConGen’s secret despatch No. 72 of July 13, copy sent Department).⁹

Sent Nanking 666, repeated Department 426.

Smyth

9. Not found in Department files.