893.00/5–949: Telegram

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

1565. Editor Sin Wen Pao told me yesterday that there would be no strong defense of Shanghai. He said that Generalissimo had left Friday and had ordered release arrested students on departing; that General Tang En-po would stay in Shanghai with his forces about 10 days more during which he would thoroughly clean out city while his best forces hold Woosung and would then depart on ships already held for this purpose. He said Generalissimo’s plans were to hold Taiwan and [Page 299] Fukien triangle, waiting World War III, and that no military showdown would be risked until that point reached. He pointed out that requisitioning of trucks and cars which started today is necessary because forces in Shanghai have already shipped so much of their equipment out and claims that, contrary to reports, troops are being taken from Shanghai rather than brought in.

Editor also said that W. W. Yen will definitely head an interim government and that police with exception of few top men would, unlike those in Nanking, remain on job under orders of committee headed by Yen in order to maintain order. He said Yen already in touch with Communists.

Despite being known as C–C stalwart, editor expressed complete disillusionment with Kmt and he is determined to stay here and make best possible terms with Communists. I think that his version which is that generally favored in other well-informed sources is probably the correct one and that British (third paragraph mytel 1550, May 7, 3 p. m.) are mistaken. Nevertheless, I feel need for policy determinations on points raised in reference telegram. Even if Nationalists have no intention of making a real stand in Shanghai, it should do us no harm if Chinese and British know we made representations against fighting and demolition in Shanghai. Even for Nationalists, it might serve as a face-saver.

Sent Department, repeated Nanking 870, Canton 41.

Cabot