The Secretary of State to the Consul General at Shanghai (Cabot)
1372. (1) Dept agrees legal blockade nonexistent. Your 2572, June 30.
(2) As to action contemplated if Nationalist warships interfere with Amer shipping proceeding to or from Shanghai, would depend upon particular circumstances. For example if visit and search or seizure as prize, protest undoubtedly follow and legitimate Amer interest protected.
(3) Convoys not in contemplation.
(4) Claims in behalf Amer citizens suffering property loss will be presented in appropriate cases; however, losses sustained not as direct result of illegal act but as general result of disturbed situation or armed conflict not proper subject claims.
Above to be given no general publicity. Paras (1), (2) and (4) may be used as background in response to legitimate inquiries from Amer interests.