893.01/6–2949: Telegram

The Consul General at Hankow ( Callanan ) to the Secretary of State

197. Mytels 166 and 167, May 31, to Department.71 Further new developments. Present status Consulates. French Consul Sought interview [Page 1128] Foreign Affairs Bureau, told could not be received, status unrecognized. British Consulate General visited by alleged Foreign Affairs Bureau official who claimed could arrange interview his chief, nothing material yet and Bureau through British Consulate General Chinese clerk disowned alleged officer. Consequently no attempt contact made by me and no incident except rejection letter sent police and refusal car registration reported by 193, June 24. Further study reveals no hope early termination of lay up our cars. Several foreigners wishing travel applied Foreign Affairs Bureau were questioned closely at length regarding their activities and organizations with stenographer taking full notes. Told would be informed but none has yet received permission travel.

Attitudes new government. Chinks have begun appear façade of rectitude presented by new government after liberation. Respective [Respect for?] property does not include effort assure property not foreign before occupation and some Consulate properties are occupied by troops. Seems attitude soft in Hankow but harsh in country and smaller centers where Mission properties inhabited by reduced number missionaries have been part occupied. Peasants reported taxed retroactively 11 years are described by one missionary “in despair”.

Adopting Communist method of elusive officialdom, foreign business firms, grouped as foreign commercial community, trying channel all matters concerning individual firms through itself to Foreign Affairs Bureau and striving reach joint decisions, individual firms when approached referring questions to Chamber. Similarly recreation club having large grounds and buildings, now unused and being pressured for occupancy, has replaced chairman by governing committee so that onus of opposing wishes of authorities falls on no one person. Success this plan remains doubtful as Foreign Affairs Bureau has ignored letters from commercial community requesting discussion problems.

Administration. Evident lack trained experienced people hampers regime, engenders supercaution business and stifles progress. Government by decree in full swing, 13 separate series totalling 23 notifications promulgated covering subjects from traffic rules and health regulations to financial edicts. Assurances protection capitalists published to stimulate business but with little effect. Search for Kmt assets unremitting and properties used by Kmt taken over including some foreign-owned.

General. Little news these days from outlying areas. Nothing re Sian but recent traveler said economic conditions bad Changsha which still held by Nationalists. Chinese merchants still travel here from Canton with watches, medicine, other luxury items despite intervening front line. In bombing June 1, 51 Chinese killed, 4 wounded and 2 of 5 bombs dropped fell in river 200 yards from Consulate. June 2, [Page 1129] 6 Nationalist reconnaissance planes greeted by few bursts anti-aircraft fire and no raid followed.

Sent Department 197, repeated Nanking 151, OffEmb Canton 92.

Callanan
  1. Neither printed.