893.00B/5–2649: Telegram

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

1836. Headed by former clerical employee of the firm, 30 Communist soldiers appeared in Shanghai power plant office yesterday about noon while fighting still in progress that area. Former employee was most solicitous re welfare staff; gave 6 PB30 dollars to enable them buy food as well as assurance full protection and aid staff including Americans to carry on. Thus assured, American on duty felt safe in returning his residence for needed rest. (Power plant itself understood still occupied by Nationalist soldiers—operating on greatly reduced load.)

Last evening ConGen learned from Texas Company that entire plant and personnel of its large installations this side of Gough Island, together with those of adjacent Shell Company and China Petroleum Company were in momentary danger of complete destruction as result of sheik falling in nearby river next to anchored ammunition barge with 400 tons explosives. ConGen immediately phoned Provisional Police Commissioner Lo who said lie would inform Communist military quarters. Twenty minutes later Texas Company reported to us that barge was being towed from danger point. Not Certain but quite possible that towing was done by crew sympathetic to Communists under instructions from Communists following receipt ConGen’s message.

These and other signs give us initial tentative impression that, aside from their natural urgent desire preserve city installations and assets intact, leaders of Communist Shanghai occupation forces are making [Page 1157] special effort to demonstrate their concern for foreigners, at least from standpoint of their physical welfare. Incidentally, in such casual meetings as our staff members have had thus far with ordinary Communist soldiers, latter have displayed friendly attitude.

Sent Department 1836, Nanking 1005, OffEmb Canton 548.

Cabot
  1. People’s Bank Notes, Chinese Communist currency.