123 Stuart, J. Leighton: Telegram
The Secretary of State to the Consul at Shanghai (McConaughy)
1428. NY Times Shanghai Jul 17 Lieberman21 story reports shop guarantee question delaying departure Amb and party incl Cabot, Olive in Air Attaché plane says “According telephoned report from Nanking this morning Emb officials now trying iron out question ‘shop guarantees’ whereby merchants undertake responsibility for debts or any other outstanding obligations left unsettled by those leaving Chi. Problem involves getting Chi businessmen endorse departing Amers amid obviously anti-Amer atmosphere and under conditions where responsibilities employers to laborers often have proved sticky and enduring” adds same question involved fon businessmen who may elect leave when transportation available from Shanghai. Story then reviews Gould–Miner affair.22
View fact all details arrangements Ambs departure most carefully handled secret basis Dept fails understand why this info allowed reach press especially since resolution problem thereby made more difficult. For urinfo Dept had considered publicity but withheld awaiting Ambs comments whether publicity increase rather than diminish his problem.
Queried on basis Lieberman story Dept spokesman today attempted minimize as “local problem” with details which we unfamiliar. Spokesman recalled Amb for some time been authorized leave said “This is evidently something that has come up in his making arrangements for departure”.