393.1115/8–1349: Telegram

The Counselor of Embassy in China (Jones) to the Secretary of State

1775. Local agent APL reports Shanghai headquarters informed him August 11, 1400 reservations already in hand prior to announcement expected call General Gordon and that within hour after announcement 1000 additional reservations requested for approximately 100 vacant berths. Number Nanking nonofficial Americans desiring reservations remains only 6. Foreign diplomatic personnel not responding enthusiastically; most are interested travel westward from Hong Kong only (for which no passengers being booked) and others skeptical actual arrival Gordon or discouraged by prospects troopship accommodations. Local missionaries have received no instructions quit China and individually continue hope constriction their activities will be sufficiently gradual to allow them function year or more. On other hand, new and killing taxes, including house and land taxes applied without exemption, and enormous rise in prices coal, kerosene, electricity and rice may be deciding factor in many cases very near future. For time being they hesitant make decision and as in past assume continuance Embassy and Consulates warrants their remaining.

In event entry Gordon Shanghai prevented by either Nationalists or Communists, Embassy believes such refusal would be sufficient signal for initiating full-fledged official repatriation effort, whether by US alone, Atlantic powers, or UN. Such effort should have fullest publicity at earliest possible date. Embassy believes neither contestant would welcome unfavorable world reaction from refusal permit entry such vessel. At same time Embassy fully supports Chungking’s recommendations (Contel 140, August 517) on publicity to be given Consulate’s closing and further recommends that Chungking and Kunming announce immediately that Consulate will close before Communist approach jeopardizes means of exit. This recommendation based squarely on observed behavior and calculations local missionaries last April and November as well as their present attitude. It is believed that such announcement will not only stimulate timely evacuation south China but have salutary effect on American citizens in occupied area now hesitating make decision.

Sent Department 1775, repeated OffEmb Canton 742, Shanghai 980, pouched Chungking.

Jones