125.857/8–1149: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received 12:26 p. m.]
3185. After mature reflection I have come to firm conclusion time has come to reduce staff ConGen materially. Present work load does not justify retention more than 50 percent American staff. Assuming continuation blockade and indefinite continuance nonrecognition status, prospects are that except for protection and evacuation work, all sections will continue with reduced load through autumn and winter. Routine work in shipping, invoice, notarial units practically nil. Volume visa and citizenship work down over 50 percent with further reduction in prospect if evacuation of foreigners takes place. USIS closed down by authorities, volume of political and economic report greatly reduced by absence mail service. Volume administrative work decreased more or less directly in proportion reduction personnel other sections.
With other posts seriously understaffed, we cannot justify retention large staff with little to do.
Almost equally compelling is welfare argument. Assuming blockade and nonrecognition continue, all signs point to winter of great adversity for foreigners Shanghai. At worst we may be confronted with indiscriminate retaliatory action against foreigners by Communist regime goaded to fury by insoluble economic problems, unfairly blamed on West; food riots turned against foreigners by vindictive Communist propaganda; uncurbed baiting foreign employers by discharged [Page 1273] Chinese employees; general denial of equal protection to foreigners with or without consent top Communist authorities; and some limitation on local freedom movement foreigners who may be regarded in some sense as hostages.
At best, under assumptions postulated we can expect winter of privation; acute lack of fuel leaving us alternatives either going cold or spending prohibitive amounts for space heating and hot water; serious lack local transportation; constant petty annoyances, mounting cost of living in terms US dollars probably beyond range post allowances; possibility punitive action at any time by unfriendly authorities; constant badgering from cold and undernourished people bound to be very numerous; continuous possibility eviction office and Government-owned houses for nonpayment Communist imposed taxes; intangible but real and accumulative burden of prolonged isolation in beleaguered city.
While this dark picture would be greatly brightened by lifting of blockade or improvement relations with Communist regime, I believe Department will agree we cannot count on such a turn of events in the near [apparent omission] as inevitable first step retrenchment program. Fifteen of them definitely apprehensive and prefer to leave, 2 on fence, and only 3 desirous of remaining. While we could use a few stenographers to good advantage, there being no male stenographers on staff, we can get along without stenographers and I do not believe the Department will wish to take the responsibility of exposing women to conditions I have outlined when their presence not absolutely necessary. I have no special reason to believe that our women staff members would be in direct danger of personal molestation, but the hardships specified would seem to tip the scales in favor of getting them out. Accordingly, I recommend that immediate TO’s46 be issued to those listed below: Surnames: Brubaker, Burrell, Dodge, Fay, Fisher (TO for Calcutta already requested), Gerathy, Josselyn, Kui-backi, Mayor, McGinnis, Parker, Rex, Robertson, Schilling, Smith, Stannard, Steiner, Turner, Thomson, Sullivan. Following have travel orders, waiting transport out: Gardner, Harrelson, Murchinson, Thompson.
I suggest those due or nearly due for home leave be ordered to US; others to be assigned to posts in Far East so as to keep travel expense at minimum, unless services specifically slated elsewhere as in case Fisher (Calcutta).
It may be impossible to obtain Communist exit permits or to obtain transportation, but we must make the effort, and TO’s are essential first step.
[Page 1274]I propose reduction approximately 40 in male staff; and large cut in local staff if we can withstand labor crisis which might be precipitated thereby.
Separate telegram elaborating recommendations as to male American staff will follow tomorrow.47
Sent Department; repeated Nanking 1746, OffEmb Canton 991.