893.00/5–2549: Telegram

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

1829. Lo Ta-kung, provisional police commissioner, appears to be a “Yang Hu man” who was already in police force. Already contacted by Consulate General, he manifests desire cooperate and assist us. Confirmation of T. K. Chao’s assumption acting mayor still lacking. Meanwhile Shanghai Security Council under W. W. Yen and members apparently representing civic, industrial, Yang Hu Green-Red Gang and KmtRC groups has been established and evidently assisting maintenance order, et cetera, ConGentel 1828, May 25.

Highly trustworthy American missionary reports information from policeman (long known personally to him) that friction has developed between local Communist underground (now operating openly) and incoming Communist authorities over question treatment police. Local Communists feeling grudge against police killed six which is said to have angered incoming Communist authorities who feel police should be given chance demostrate loyalty to new regime.

All information thus far indicates Communist soldiers well disciplined and behaved. Those thus far contacted are Shantung men.

Twenty-seven Chinese Air Force planes left Kiangwan southward this morning, including according to press General Chou Tse-jou. Presumably some of remaining Nationalist VIPs, such as Kmt C–C leaders Lei Chen, Fang Chih and Ku Chen-kang, on board.

To prevent what they considered danger of Nationalist abduction, Yang Hu agents yesterday “rescued” Democrat [League] leaders Lo [Page 345] Lung-chi and Chang Lan from their hospital imprisonment by Nationalists and Lo phoned Consulate General to report their escape.

Sent Department 1829, repeated Nanking 1000, Canton 542.

Cabot