893.00/7–2449: Telegram
The Minister-Counselor of Embassy in China ( Clark ) to the Secretary of State
[Received July 24—8:31 a. m.]
Cantel 814. It seems to me we can expect situation Shanghai become increasingly inflammable and dangerous for Americans, Nanking’s [Page 1273] 1593, July 23, repeated Canton 667, Shanghai 892. Confronted with continuance blockade and bombing, we can expect economic situation has deteriorated rapidly. It is only reasonable to expect Communists will continue and enlarge upon their program of vilification of US and inflaming people Shanghai against US for supporting regime that is destroying their livelihood. It seems inevitable to me that at some stage passions will become sufficiently aroused that some small incident ignite inflammable situation causing riots which very possibly will result in destruction American life and property. Such an incident could not but have its repercussions in remainder “liberated” China where xenophobia is always just under surface.
There is every reason to believe Communists are tolerating continuance American institutions and enterprises in China only so long as they serve useful Commie purpose and they will be eliminated in due course.
With increased danger to American lives and property which it seems to me will inevitably result from inflammatory situation being created by Communist propaganda, I agree with Cabot that the time may have come when we should consider urging Americans to review their individual situations in China and consider possible desirability of withdrawal at this time. Very discreetly I have ascertained that Nationalist Government, for its part, would grant safe conduct repatriation vessels.
Sent Department Cantel 814, repeated Nanking 540, Shanghai 458.