125.8576/7–1749: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received July 17—12:18 a. m.]
2805. ReDeptel 1420, July 15, repeated Nanking 836, Canton 458, Hankow 42. ConGen aware regrettable consequences compliance USIS closure order. Convinced, however, this defiance would be quixotic. Communists have power to enforce closure order and undoubtedly resolved use force if necessary. Majority Chinese staff would not dare violate order. American staff USIS would be endangered as would other functions ConGen. Am therefore reluctantly complying as from July 16 under protest. Emphatic protest COMO [memo] form will be delivered Communist authorities July 18. Text will be forwarded and might be used on VOA when rejected by Communist authorities. Activities will be termed “suspended” rather than “discontinued”. Local staff retained on pay roll for present, but believe early decision re disposition local staff should be made by Department in consultation with Connors.19 Local staff could be dismissed with serious embarrassment Communist authorities by fixing entire responsibility on them. Such course has much to recommend it but would be exceedingly rough on some loyal Chinese employees who have courageously stayed with program and who can hardly expect to find other employment here. If transferred to Nationalist China, unlikely they can obtain exit permits or transportation near future. While American staff cannot move now either, issuance travel orders might be considered.
ConGen believes this highhanded action Chinese Communists vulnerable to effective broadside which might take form of stinging statement by highest available Department officer. Possible lines statement might take set forth separately.20
Sent Department; repeated Nanking 1581, Canton 893, Hankow 54.