811.3393/12–1348: Telegram

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

2749. Reaction to Admiral Badger’s speech appears mixed. It has been generally welcomed in Shanghai pro-Govt circles. Local market reacted favorably and general impression is that confidence has been increased. Both Mayor Wu and Wong Wen-hao have expressed themselves favorably regarding it to me.

All foreigners expect to benefit from possible Marine protection since, as the Shanghai Evening Post asserts, “in case of big trouble, the Navy can be depended on to endeavor to look after more than just our American community”. British interests especially appreciate what is described as a change in American policy from evacuation to protection of Americans.

Other indications less favorable. Marshal Li Chi-sen13 has denounced our intentions to send Marines to Shanghai and obviously thinks we are going further than Admiral Badger indicated. Soviet colleague in talk with me made every effort to find out what was behind [Page 933] our move and was obviously convinced we had ulterior purpose. He and French colleague seem somewhat of same opinion. Fear it is even conceivable that Russians may now decide to land own forces.

While the encouragement given to essential Americans to remain here is desirable, that unavoidably given at the same time to nonessential Americans is unfortunate development, inasmuch as an estimated 1000 of the latter group are still in Shanghai and as the Shanghai Evening Post observes, “there is a danger that some non-essential people in Shanghai may be so reassured as to think their projected trips aren’t necessary”.

The statement, in stimulating local morale, has also aroused in Chinese as well as foreign quarters unwarranted expectations, the later inevitable disappointment of which would probably have unfortunate consequence. Temporary nature of any Marine landings is not generally appreciated and it is reported that those interested in the prolongation of the Marines’ stay might provoke incidents towards that end.

Cabot
  1. Chairman of the Kuomintang Revolutionary Committee, Hong Kong.