124.93/10–2049
Memorandum by the Director of the Office of Chinese Affairs (Sprouse) to the Deputy Assistant Secretary of State (Merchant)94
With reference to your question as to the possible downgrading of the Embassy at Nanking to a Consulate General or Consulate now that the Communist “government” has been formed and invited recognition, there is attached a copy of Nanking’s telegram no. 2185 of September 2895 which anticipated this problem and recommended, for reasons which CA96 considers cogent, that no action be taken except on the basis of joint action with the U.K. and France.
In addition to the reasons given by Nanking for retention of the status of Embassy, it is our opinion that it might be politically unwise to take any steps to change the status of our office at this time. Such action, if publicized, would be sure to be interpreted as indicating a basic change in our attitude toward the Chinese Communists along the following lines: (1) that the U.S. had no intention, now or in the future, of recognizing the Communist regime and was therefore cutting all remnants of diplomatic ties with Communist-occupied China; or (2) that the U.S. was paving the way for recognition by the removal of our Embassy office at Nanking for the purpose of raising our Consulate General in Peiping to an Embassy. Speculation along either of these channels would, we feel, be unfortunate, and it is our opinion that we would be well advised to let the present situation continue undisturbed.
[Page 838]As far as precedents for such action are concerned, you will recall that at the time of Pearl Harbor we had three functioning Embassy establishments in China: one in Japanese-occupied Peiping with a Counselor as principal officer; one in the puppet capital of Nanking with a Second Secretary in charge; and one in the Nationalist capital of Chungking where the Ambassador was in residence.