893.00/6–649: Telegram

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

2010. Member Democratic League well known to Consul General attended meeting Shanghai cultural leaders June 6 and reported following highlights of several hours’ speech by Mayor Chen Yi:

Chinese products formerly exported to SE Asia as matter “face” to give semblance of prosperity would be kept in China to meet needs Chinese people.
As USSR and “satellites” might not be able offer assistance to China for time being, aid from US and British would be accepted if presented on basis of equality with no strings detrimental to Chinese sovereignty attached. Source stressed this “aid” meant loan, technical assistance or help of Marshall Plan nature, as distinguished from ordinary trade, which naturally also desired by Communists.
Students who wanted substitute Russian for English language in educational institutions were cautioned that English language very important and should be studied by Chinese students as means achieving greater knowledge.

Of particular interest was source’s comment that Chen’s speech was for internal consumption Shanghai Communists and cultural workers and not for foreigners, which apparently [is] confirmed by routine report of meeting carried by Chieh Fang Jih Pao and Ta Kung Pao June 6 omitting above points.

Repeated Hong Kong 141, Peiping 165. Department pass Tientsin as 68.