125.8576/7–1849: Telegram
The Minister-Counselor of Embassy in China (Clark) to the Secretary of State
[Received July 19—7:11 a. m.]
Cantel 772. Concur no effort should be made defy Communist order close USIS at this time (Shanghai 2805, July 17 to Dept, repeated Nanking 1581, Hankow 54). Recommend, however, that, while USIS closed to public and no distribution or other public activities carried on pending clarification situation and result protests Communist authorities Nanking, Peiping, all staff be retained on basis Communist order only suspension USIS services. Believe Shanghai staff can be utilized following basis: Library staff process all backlog books, periodicals, et cetera; editorial translation staffs utilized special translations pamphlets, Newsletter material, other special articles, looking to day when can resume normal function; visual media staff continue produce posters et cetera for future use. For balance of staff make work as necessary such as housekeeping duties, inventory, et cetera, or adapt [adopt] shorter work week. Hankow follow same example.
Believe essential retain loyalty [and] goodwill our staff who have stuck with us during takeover and present emergency justifies above plan. Discharge local staff might embarrass US more than local Communist authorities since latter might force them make exorbitant demands severance pay et cetera, especially since new employment difficult find and transfers Free China impossible this time due lack transportation.
On whole believe we must for present consider order as only suspension and not final decision force USIE completely out of Communist China. For these reasons urge Dept instruct Shanghai [and] Hankow retain full staff above basis pending further developments. Suggest Department also may wish issue precautionary instructions Tientsin, Peiping.
Sent Department Cantel 772, repeated Nanking 509, Shanghai 436, Hankow 21.