893.00B/9–849: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received September 8—5:53 a. m.]
3706. In interview arranged with John Keswick, Director Jardine, Matheson57 office, ConGen informed [that] Keswick recently made personal call on Mayor Chen Yi at latter’s invitation. Mayor’s apparent purpose to discuss local conditions and tell Keswick Communists regret departure so many foreign businessmen from Shanghai and [Page 1290] their desire that foreign merchants remain. Mayor stated if foreigners patient conditions would surely grow more favorable for continuation their businesses. Mayor assures Keswick recent imposition many new taxes not intended force foreigners out but to raise needed revenue and that SMCC was even now considering rescinding tax schedules on churches, charitable institutions, schools and hoped later adopt more lenient attitude. Mayor pointed out many Communist officials foreign educated and acquainted both with foreigners and conditions abroad.
Keswick stated he hopes for series of discussions between foreign businessmen and Communist officials which he hopes initiate within week or 10 days.
At end Keswick’s conversation with ConGen he made statement he did not expect Americans fare well under Communist regime but without indication this opinion formed as result conversation with Mayor or otherwise. Probable Keswick discussed matters with Mayor other than those indicated. However, despite Mayor’s ostensible concern re departure foreign businessmen and alleged Communist attitude, ConGen has no evidence concrete action taken by Communists ease difficulties encountered at every turn by businessmen or even more lenient exit, entrance permit procedures which would reduce feeling claustrophobia prevalent in foreign community.
From independent source ConGen understands Keswick told Mayor, and quite flatly, Jardine’s could not take financial punishment encountered past 2, 3 months indefinitely, resulting largely from labor demands and business inactivity.
Sent Department, repeated Nanking 1937, Canton 1088.
- British shipping company.↩