893.00/12–1048: Telegram

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

2161. Scheme outlined urtel 2727 Dec 10 rptd Nanking 2046 for peaceful turnover Shanghai appears offer great advantages, but Dept somewhat concerned over method implementation and character “undertakings” recommended. Following Dept’s preliminary views corresponding numbered paras reftel:

1 and 2.
Dept concurs provided ECA in position furnish rice.
3 (a).
This undertaking would appear essential for success plan.
3 (b).
It would appear likely that Nationalist forces will offer little if any resistance within Shanghai perimeter and danger likely come from disorganized looting and rioting rather than organized resistance Nationalist forces.
3 (c).
There would, of course, be no means assurance undertakings given by Comm agents Shanghai or Hong Kong would be respected. Question arranging unmolested departure municipal authorities after turnover raises problem what destination not under Comm control might be accessible. US Govt must not be put in position guaranteeing such departure.
3 (d)
See 3 (c) above. While police might be requested accept such undertaking, removal Govt goods and property will undoubtedly continue until last minute. On other hand, Dept perceives no reason expect similar undertaking by Comms would be necessary, as certainly in their interest prevent insofar as possible any sabotage, destruction or removal.

Dept of opinion that, while plan has merit, US Govt participation should be limited to furnishing rice by ECA and that planning and implementation should be responsibility those foreign and Chinese groups who in own interests would presumably be prepared raise funds, approach Mayor Wu and arrange details. There would be no objection your suggesting matter to civilian groups, such as Chambers Commerce, Rotary Club etc, but you should remain in background giving personal and unofficial advice in your discretion and as deemed appropriate.

Keep Dept advised progress such planning.

Lovett