893.101/3–2449: Telegram

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

986. Mayor Wu’s resignation, although submitted, not yet accepted as local papers report Premier Ho’s return of resignation with note [Page 198] saying “please stay”. Past few days have seen storm of protests in newspapers against Wu decision, as well as petitions by various public and private organizations urging him to remain at post. Generally accepted Wu has done fine job in past reconciling groups which control Shanghai and maintaining order. Feared that his withdrawal will exacerbate relations between military authorities (who favor continued resistance to Communists) and “civic leaders” such as Tu Yueh-sheng (who have been striving reopen normal trade relations with North China) with possible disastrous effect on city stability. Recent press comment hints that in spite Wu’s stated firm resolve to quit, he may be prevailed upon to retain post if allowed take vacation to recover “spiritual and physical” health. During absence city would be run by new Secretary-General Chen Liang. In past similar situations, Wu has agreed withdraw previous resignations in return for increased power vis-à-vis garrison commander, police commissioner and others vying for control city. Believed questionable whether he can squeeze significant concessions out of this situation as Tang En-po military control probably too firmly established under martial law status of city.

Sent Nanking 581; repeated Department 986 OffEmb, Canton 198.

Cabot