Foreign Relations of the United States, 1949, The Far East: China, Volume VIII

893.00B/6–2449: Telegram

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

Shanghai, June 24, 1949—8 p. m.
[Received June 25—9:21 a. m.]

2479. While Consulate General does not wish draw premature conclusions on any phase of regime still in infancy, study of Communist press since take-over Shanghai would appear reveal certain weaknesses in propaganda technique which VOA can perhaps exploit. Communist propaganda machinery formidable weapon when working according to plan based on predictable events as indicated, for example, by ease with which public aroused to take action against silver peddlers (remytel 2227, June 13⁶⁹). However there are indications machinery too unwieldy to shift gears rapidly when unforeseen events occur (perhaps corresponding to general rigidness Communist dialectics which, in claiming to be able to predict inevitable progression of events in all fields, sometimes must indulge in fancy interpretation to make unexpected occurrences fit dialectic pattern). Communist authorities may find themselves considerably embarrassed by position into which they have been led in past 2 weeks by their propaganda campaign. Study of party and party line press indicates that after initial silence regarding foreigners in Shanghai immediately after take-over, mild but definite anti-foreign trend has become increasingly apparent in last few weeks.

This shown by following (previously reported to Dept):

1. Increase in press coverage of incidents in which foreigners allegedly maltreat Chinese in which foreigners always shown to be aggressor and forced to acknowledge wrong by public apology. Incidents of this sort invariably accompanied by moral that days of imperialism and special privilege in China are over.

2. Initial stage of press attack on foreign-owned utilities for raising rates, accompanied by hints companies should be taken over by people.

3. Increasing involvement of foreign firms in labor disputes (although these cases have not yet received prominent treatment in press).

4. Increasing reference in press items and editorials to British-American imperialism (foreign news items almost exclusively taken from Tass or Hsin Hua) and increasing number special articles on various phases of Soviet Russian life.

5. Recent “uncovering” in newspapers of USA spy activities in Manchuria.⁷¹

6. Climax reached in attacks on North China Daily News and indirectly on foreign correspondents for publicizing assumed Kmt mining Yangtze channel and accompanying accusation of British-American conspiracy to aid Kmt establishing blockade.⁷²

Last few days have produced events obvious to major portion Shanghai populace which in themselves disprove views and motives ascribed to Britain-America by Communist propaganda over Kmt mines incident. It becoming difficult for vernacular press to maintain silence on existence of actual blockade in view official Kmt announcement commencement blockade on June 26. Evidence appearing in English language press that Britain and possibly USA may not submit to Kmt announced blockade, together with logical British-American business interest in keeping Shanghai port open, will make it difficult force imperialist blockade idea down throats of sophisticated Shanghai merchants. Also repeated Communist statements that shipping lines free and nondangerous being disproved by daily Nationalist plane bombing raids which can be seen by everyone in city. Will be interesting to see how Communist press explains away bombing of SS Anchises and attacks on American oil installations during these raids.

Should American-British make definite stand against Kmt blockade, which precisely contrary to what dialectics tell Communists these “capitalistic”, “imperialistic” nations are bound to do, Communists will be hard put to it to shift stand or make facts fit previous statements. Consequently Dept may wish VOA to stress any British-American acts protesting Kmt blockade or indicating desire to keep shipping lanes open.

On other hand should Britain-America recognize Kmt blockade, this will present Communists with to of belligerents’ rights and duties towards neutrals which tends to lead towards de facto recognition Communist regime (involving Communist assumption of international obligations) rather than the de jure recognition which Communists apparently desirous of obtaining without interim steps.

Repeated Nanking 1431, Canton 800.

Cabot

69. Not printed.
71. See telegram No. 1039, June 19, from the Consul General at Peiping, p. 965.
72. For further documentation regarding closure of certain ports, see vol. ix, pp. 1098 ff.