893.801/7–2049
The British Embassy to the Department of State 43
The following telegram has been received by the British Embassy from the Foreign Office. The views of the State Department upon it are urgently requested.
“The Nationalist blockade appears effectively to have closed the port of Shanghai where the economic situation is acute, With a view to checking a deterioration in this situation which may well produce chaos, I am considering whether it is possible to bring some measure of relief by organising deliveries of essential supplies, notably of rice and fuel.
2. I fully share the views of the United States Government as to the undesirability of relief measures on scale sufficient to benefit the Communist economy so long as the Communists maintain their present attitude to our business interests, but I feel we cannot disregard the danger to which our communities will be exposed if public utilities break down for lack of fuel or food riots ensue.
3. I should accordingly be grateful if you will put this consideration to the State Department, asking them as a matter of urgency for their views and whether they would be ready to co-operate in this limited task. We have not yet made up our own minds on the subject but should be grateful for some indication of United States views in order that the problem may be considered by Ministers on Friday morning, 22nd July.
4. I realize that this poses the question of the Nationalist blockade. It is for consideration whether pressure should not be brought to bear on the Nationalists to relax it to the extent of admitting these relief ships or whether such ships should travel in a protected convoy. I believe the former course is worth considering and it has been suggested that the Commander-in-Chief, Far Eastern Station, might take the opportunity provided by a visit of his Deputy Chief of Staff to Formosa to explain our intention frankly to Admiral Kwai44 on a purely naval basis.”