893.00B/6–1949: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received June 20—7:24 a. m.]
1325. I left for Shanghai evening June 11 returning by night train June 16. Trip seemed very worth while. Immediate purpose was have conferences American businessmen and missionaries. I met each group separately with about 25 present each case. They seemed pleased this opportunity as I certainly was myself. I met individuals or smaller groups each type when discussion went along same lines. Also had several contacts with Chinese: One with Yenching graduates, another with Christian leaders. Of more practical value perhaps were visits, very confidentially, from certain politically active Chinese. One was Lo Lung-chi, Vice Chairman Democratic League, another with Li Chen, one of peace delegation.
Philip Fugh went with me, had long talk with Chang Han-fu,63 opposite number to Huang Hua here.…
Foreign and Chinese employers alike apt worry over labor troubles. They have been precipitated by Communist propaganda in past, but new authorities thus far seem more conservative than employees in individual factories. Trade Unions seem somewhat between the two. Unless CCP leaders can adopt more realistic and tolerant course than their earlier theoretical approach, they may alienate both management and labor.
This trip to Shanghai gave me ample evidence local CCP authorities very anxious develop international trade and make utmost use Shanghai for promoting industry, communications, production, reconstruction. To this end they especially want friendly relations with USA. They very curious as to why I had made trip, what my impressions of their take-over had been and what my general attitude was to these issues. How much this is merely effort solve local problems or represents purely temporary tactical shift it [is] open question. They are hampered by strictness their own system and in way that subordinates have of overreaching their authority they seem to foreign merchants to be indifferent, incompetent. My impression is this largely due to regimentation which gives very little discretion and makes person concerned more anxious follow instructions than get results. Of greater importance is indication this trip afforded me of veering toward national interests in economic recovery with international help, at least among one influential element of CCP leaders. This gives us an opportunity to influence their policies by [Page 764] firm but tactful insistence on principles which we believe essential to any satisfactory cooperation.
Sent Department 1325, repeated Canton 561, Shanghai 720.
- Director of Alien Affairs Office of Communist Military Control Commission at Shanghai.↩