893.00/3–349: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

735. [To Nanking:] I have discussed with Mayor Wu proposed contribution some 300 million GY47 by Shanghai guilds to maintain soldiery now quartered in city. I pointed out Consulate General and American business were seriously concerned at possibility latter would be asked make voluntary contribution to one side in Chinese Civil War. I added American business would, of course, raise no question about legally enforceable taxes.

Mayor Wu pointed out funds for maintenance troops quartered this area are wholly insufficient for their food, pay, etc., that many incidents showed soldiery were getting out of hand and contribution was designed keep them satisfied. When I expressed my sympathy with his objective but repeated my misgivings re voluntary rather than [Page 1234] legally enforceable contributions, Mayor Wu claimed this contribution would be legally enforceable under municipal] ordinance. Despite his assurances, I am frankly not satisfied this contribution when promulgated will be legally enforceable and I am convinced Mayor Wu is not really satisfied on this point either.

Embassy may wish discuss this matter very informally in Nanking or wait until we have full details re measure before taking any action.

Sent Nanking 462, repeated Dept 735, OffEmb Canton 118.

Cabot
  1. Gold yuan dollars.