The Acting Secretary of State to the Minister-Counselor of Embassy in China (Clark), at Canton3
TelCan 358. Re ur 540 June 6 and 597 June 16, Dept desires unless you perceive objection thereto that you convey fol in substance orally and informally Li Tsung-jen4 or Yen Hsi-shan. Dept leaves it to ur discretion whether you inform Tung Ling of what you have done.
US Govt has received reliable reports that Chi Govt intends announce Shanghai theater mil operations, that fon vessels will enter port at their peril and that Chinese Govt has every intention bombing shipping in port Shanghai and approaches thereto. US Govt assumes that before taking measures of this sort Chi Govt will weigh carefully any apparent advantages against effect these measures might be expected to have in inflaming active hatred Chinese public in Shanghai and elsewhere against Govt and effect which such attacks might have on public opinion in fon countries now sympathetic to Chi Govt and furthermore that Chi Govt will have considered possibility that many countries may not acquiesce in what would amount to blockade Shanghai port not declared as such and enforced only by occasional air attacks. If such measures undertaken US Govt wld itself have to consider carefully its own position in light its historic attitude respecting [Page 1100] blockades and cld not of course countenance unprovoked bombing Amer vessels.
For Taipei. Dept desires Con Taipei seek opportunity convey substance foregoing informally orally Gov Chen Cheng.
Dept informing Brit Emb, Washington of reports referred to above and steps US Govt taking with suggestion Brit may wish take similar action.