893.00/5–1949: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received May 19—6:36 a. m.]
1722. Remytel 940, May 18, repeated Department 1700, Canton 480. Yang Hu source who has proven fairly reliable states that Generalissimo and son Ching-kuo, after moving to ex-French concession for 2-day stay (confirmed by another good source), left last night for Chusan Island. Source states that General L. S. Chou, Head Political Section of Nanking–Shanghai–Hangchow Garrison, told Yang Hu (his father-in-law) that Generalissimo quite pleased by “strong” Nationalist stand in Pootung; that Shanghai area fighting thus far has cost each side about 5% casualties (9,000 for Communists and 5,000 for Nationalists). Source says that Tang has not yet definitely agreed limit fighting to outside perimeter former settlement-concession areas but is still discussing matter with Yang Hu and W. W. Yen thru medium of General Chou.
Increasingly strong rumors that final payoff troops by local merchants being completed and that end Nationalist resistance may come this weekend.
Sent Nanking 957, repeated Department 1722, OffEmb Canton.