393.1115/8–849: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received 7:32 p. m.]
3109. Re Deptel 1502, July 30. APL to date has received about 1300 applications for passage on General Gordon September 15 to San Francisco of which 255 Americans and 1,045 aliens including DP’s.13
[Page 1285]About 500 applications for passage Hong Kong received with hundreds foreign and Chinese applicants for Hong Kong passage turned away account lack space. APL has filed application Communist authorities for entry permit for General Gordon and was told reapply about August 20 when presumably more details re passengers and cargo would be available. Communists obviously more interested in import and export cargo than in passengers. If Nationalist Government issues safe conduct for Gordon prohibiting any movement of cargo in or ex Shanghai, questionable whether Communists will authorize entry.
Exit permits still being processed slowly with no assurance final permits except in few rare cases. Chances are substantial percentage applicants will not be able obtain permits before Gordon sailing September 15. Application process so involved administrative difficulties would interfere even if Communists had no special intention impede departure foreigners.
I have consistently advised APL representative accept foreign passengers without discrimination and have kept consular colleagues fully informed re APL plans to give international aspect to project. I have made it known we do not consider Gordon evacuation ship and we hope follow it up with calls by other American vessels. President Wilson will probably be booked call here about September 27 if sufficient inducement and if Gordon experience satisfactory. Am working closely with British and expect some American passengers to embark on small British coastal steamers to Hong Kong if they are able arrange projected trips. This will be especially important if Gordon reverses usual schedule and calls Shanghai homeward bound rather than en route Hong Kong and Manila. APL agent has already recommended this in order shorten trip for uncomfortably crowded passengers and in order avoid pressure thousands Chinese wishing go Hong Kong who could not possibly be accommodated.
Some people have deferred booking steamer passage in hope NWA14 10 special flights to Hong Kong (ConGentel 2946, July 28) already authorized by Communists will materialize.
APL has issued circular letter to American community announcing prospective arrangement General Gordon and inviting applications passage. Their circular letter which was not cleared with me does not sufficiently emphasize contingent nature arrangement. No mention made of serious difficulties which are anticipated re Communist entry permit, Nationalist safe conduct and exit permits for passengers. This unfortunate since hopes have been built up which if not fulfilled will lead to great disappointment and loss morale. I am taking discreet [Page 1286] steps through American Association and otherwise to counter by word of mouth any false optimism and to remind community effort will be made bring in other ships and planes—American and foreign—regardless outcome Gordon effort.
Application list for Gordon and later ships will undoubtedly grow. Several important foreign enterprises planning remove entire foreign staff. Some mission organizations Central China reducing their foreign staffs up to 50 percent. Some missionaries interior who would like leave on Gordon encountering difficulty obtaining transportation to Shanghai account reluctance Communists grant rail travel permits and destructive Nationalist bombing of railroads, especially around Nanchang and Kiukiang.
Canton please inform me re prospects for Nationalist safe conduct General Gordon and later APL ships indicating what restrictions, if any, as to nonmilitary cargo and otherwise will be imposed. Situation many foreign firms with acute liquidation problems would be greatly eased if they could import rice on Gordon.
APL fully aware possibility Gordon call may have to be cancelled short notice. Agent says cancellation short notice would not occasion unduly heavy loss since ship will travel between Kobe and Hong Kong in any event and backlog passengers Hong Kong would cushion effect space cancellations here.
Sent Department, repeated Nanking 1718, OffEmb Canton 965.