893.00/4–2449: Telegram

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

1321. Shanghai main city still quiet. Refugees now pouring into suburbs especially Hungjao where roads heavily jammed outside wooden wall (near Hangchow relay). Troops preventing their entrance city proper with roadblocks.

Soochow occupied by Communists early this morning, according information received by Assistant Military Attaché. Local papers have not yet admitted this though one reports Nationalist troops evacuating Soochow southward. Sin Wen Pao 24th reports battalion Communist troops entered Wusih late last night. Trains from Shanghai said running only as far as Quinsan.

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Pursuant to emergency order by Garrison Headquarters, River Police have cleared Soochow Creek of river craft forcing thousands junks, etc., into Whangpoo and beyond. Purpose unclear. American resident Pootung has just reported two Chinese gunboats and one LSM all apparently readied for action are coming up Whangpoo toward Shanghai, also large floating crane. Same source says 1500 drums fuel oil being moved Shanghai ward from Pootung installations. These developments suggest Nationalist military leaders still contemplate offering battle. This also seems confirmed by reliable information received by Assistant Military Attaché that movement of Nationalist troops from Hangchow north toward Shanghai now under way, though this may likely be for purpose providing stronger cover for retreat from Shanghai. Meanwhile, AP despatch cited in local press asserts Reds advancing unopposed from Kiangyin area towards Shanghai.

Vernacular press reports Shanghai Kmt Chief Fang Chih arrived Taiwan. China Press reports yesterday meeting of 150 Legislative Yuan members how at Shanghai reached decision that their group will leave Shanghai within 3 days for Taiwan, Canton and Kweilin. Hong Kong 23d Reuters despatch reports heavy air arrivals Hong Kong and Canton of rich Shanghai merchants with service between Shanghai and Canton said increased to 30 planes daily.

Sent Department, repeated Nanking 763, Canton 315.

Cabot