The Secretary of State to the Ambassador in China (Stuart)
587. On assumption Shanghai will fall in immediate future and prior fall Tsingtao, Navy and State in agreement ComNavWesPac shld withdraw all ships and activities from Tsingtao at time of Commie capture Shanghai. If Shanghai does not fall in immediate future, matter will be again reviewed in Washington.
Contd presence US naval forces Tsingtao involves risk Commies may preface move against Tsingtao with public announcement its objective expel US forces from city in which case withdrawal would be none the less inescapable but much more embarrassing to US Govt or it may afford Commies opportunity subsequent to capture of city boast they forced US Navy leave Tsingtao.
Navy sending identical message to Admiral Badger.