393.1115/8–349: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received August 3—10:53 a. m.]
3002. Regular meetings American Association August 2 authorized President make statement in general support American Chamber’s [Page 1283] representations (ConGentel 2976 to Department July 30 [31], Nanking 1663) as follows:
“Association appreciates ConGen’s efforts obtain transportation for Americans [and] others desiring evacuate. APL plans heard with interest. Due slowness authorities and uncertainty re exit permits, Association feels more than one ship should come Shanghai and in addition other means transport including international airline services and shuttle flights should be used. Probably Communist authorities will not look with favor on entry one or more ships merely for repatriation. To demonstrate US Government not responsible for initiation, maintenance blockade as widely claimed by present regime, very strongly recommend arrangements include facilities for entry, clearance commercial shipments in normal course trade. This will in effect necessitate temporary lifting blockade, making evacuation possible although not materially affecting rapidly deteriorating economic situation Shanghai. Probably in order sell an unlimited quantity exports abroad, Communists will have to readjust exchange rates to realistic levels. This means those cultural, commercial organizations which required remit funds Shanghai defray liquidation costs can do so at realistic rather than confiscatory rate. This connection urged small rice allocation (minimum 10,000 tons) be made available for purchase by organizations requiring funds Shanghai meet liquidation expenses, primarily large payments employees whose pay scale based on rice whose price skyrocketed recently due short supply.
“Association calls Department’s attention rapid deterioration situation Shanghai and interior points which increases jeopardy American nationals. Energetic efforts needed lift blockade permanently. Association therefore voted urged Department use every possible means bring this about. Otherwise felt evacuation will be blocked. Tientsin unavailable for exit Shanghai.
“Also urged Nationalist Government be approached view permitting foreign ships other than American to enter Shanghai, especially ships calling Hong Kong, not USA. Appearance this is withdrawal Americans only would be unfortunate. Exhaustion resources supplies necessary maintain local organizations in terms payroll, et cetera, makes general withdrawal advisable.
“To strengthen trading position Americans in Communist areas in arranging withdrawal considered imperative embargo all military aid scheduled but unshipped to Nationalists until all Americans desiring evacuation have been given opportunity do so.”
Sent Department, repeated Nanking 1674.