393.1115/8–1549: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received 6:21 p. m.]
3241. Re ConGentel 2976, July 31 and Deptel 1555, August 10 [9]. Following from American Chamber Commerce [at] Shanghai for Department, banks, firms listed reftels:
“American business community Shanghai appreciates consideration given its memo July 31 and offer cooperation from their compatriots USA. Most large American firms have received instructions their respective principals requiring in general repatriation foreign staffs so far as practicable.
[Page 1293]“Basic problem is how to evacuate from revolutionary area which gives no indication establishing orderly government guaranteeing protection due processes law or equal rights Chinese and foreigners before courts, government administrative officers, agencies.
“Due general administrative capacity [incapacity?] Chinese cope adequately with modern industrial problems, techniques most evident re labor, industry, finance, administration city size Shanghai, Communists pulled out all organ stops in anti-American, anti-British, anti-imperialist propaganda campaign for sole purpose focusing attention on foreigners to enhance Chinese enthusiasm for civil war, making foreigners responsible for all ills Chinese and blockade Communist ports, thus relieving Chinese of responsibility properly administrate Shanghai at time when problems attendant revolution plus flood typhoons very apparent.
“If orderly withdrawal foreign business to be made possible at minimum cost and minimum personal hazard, partial temporary suspension blockade essential. Continuance blockade will thrust on foreign business task supporting all types labor in Shanghai which now or in past employed by foreign management whether now actively engaged in production or can be economically sustained. Apparent policy local authorities is to make foreign management responsible for welfare, livelihood all direct and contract employees, thereby relieving local authorities responsibility in providing food, employment of Shanghai industrial classes.
“In implementation head office instructions local American companies will endeavor work in consonance with recommendations Department as and when Department’s reactions to Chamber’s memo July 31 received. Several elements American community believe objective evacuation most effectively realizable by American Association on behalf Americans in general but handling through Chamber, especially critical complex problems key businessmen, in light following considerations: (1) as custodians firm [garble] they are especially vulnerable extortion; (2) exit permits probably will not be readily granted to heads enterprises deemed essential by Communists continuity of which Communists feel dependent on foreign leadership, capital; (3) need to evacuate Chinese, foreign staff other than Americans when American management leaves; and (4) heads of firms at mercy of labor now completely out of hand.
“As stressed in reports to head offices, principal problem faced by all Americans is obtaining exit permits which Communists will not grant until exact date departure known. To date less than 25 permits processed (other than IRO18 refugees), these only tentative subject later confirmation. Alien Affairs Office only accepting 30 exit permit applicants daily. Should large scale evacuation be indicated, no conceivable possibility obtaining exit clearances for key Americans for long time. This confirmed by difficulties experienced by Ambassador and Cabot. Also British Chamber has wired London recommending general evacuation unless lines communication, transportation between Shanghai outside world at least partially restored, assuming ‘lifting blockade’ not feasible. In event British evacuation, possibilities key [Page 1294] Americans obtaining exit permits will be immeasurably complicated. This connection please consider following:
- “1. If possible, blanket authorization should be secured for Americans to leave China. As Communist regime not recognized, it may be necessary make representation through UN or International Red Cross. Major hazard in establishing exit permit application routine is requirement advertise departure in local press, open invitation to extortion by gangster elements, labor racketeers. Americans unable devise reasons for leaving China deemed valid by hostile Communist officials, hesitate make individual applications for exit permits except as last resort for obvious reasons. Chinese Communists shown by propaganda policies actions they propose force return to them all profits taken from China due foreign business activities over last 105 years since first treaty.
- “2. Considered view informed Chinese [and] foreigners alike that no extensive evacuation Americans will be permitted unless Communists receive tangible benefits in return over and above that expected from confiscation assets, excessive taxes, severance pay, etc. Communist demands may involve ransom payment in some form, or might be willing accept some other type bribe or trade such as lifting blockade permitting entry freight they need in conjunction reestablishment passenger services we require.
- “3. Evacuation can be most effectively accomplished if done quietly, continuously using both ships and planes operating on regular schedules. This would involve partial suspension blockade making freight, passenger services available to both Chinese, foreigners.
“Due points made, impossible determine number passengers with valid exit permits who desire accommodations information called for paragraph 2 message August 10 [9]. To date 1600 applications for passage for San Francisco received for General Gordon alone. No thorough canvass American community made as such action might forewarn, antagonize Communists.
“As prerequisite further planning Shanghai, we need accurate information from Department re following:
- “1. Is it feasible obtain blanket authorization from Communists for Americans desiring leave China through UN, International Red Cross, some other agency?
- “2. Does Department expect Nationalist safe conduct for evacuation ships and planes; if not, is Department prepared arrange escort by US Armed Forces?
- “3. Has Department any reason assume Communists will permit entry ships, planes for evacuation purposes only, i.e. without providing normal freight, passenger services both Chinese, foreigners?
“Without information from Department re above important points, not possible develop effective local solution to evacuation problem. Fully appreciate we are asking confidential information re Department policies. Nevertheless, as individuals enmeshed in increasingly difficult situation due actions our Government, we feel we have right seek clarification Government’s attitude especially as majority American businessmen encouraged remain at their posts by Department and assured full support.
“We cannot emphasize too strongly Department should indicate at least to Consulate General whether US Government is tolerant Nationalists’ [Page 1295] blockade on either policy or legal grounds to extent that attitude will not be modified even to provide evacuation of Americans If so, we ask Department so inform Consulate General so we may clearly understand gravity our position and plan accordingly.
“Our apprehensions greatly increased by Department’s refusal grant permission foreign airlines operate 10 chartered flights out of Shanghai for evacuation purposes presumably on grounds that limited numbers Communists would be carried to or from Hong Kong on these flights. We see no consistency in this attitude as British ships regularly carry Chinese between Hong Kong and Tientsin. We doubt American ships will be allowed entry Shanghai unless they take Chinese passengers, If intent Department is to minimize quantity freight taken to Communists, would seem obvious most effective means providing evacuation transportation within limits that objective would be to approve chartered flights from Shanghai.
“Chamber would appreciate Department making known full content this message to same organizations supplied substance Chamber’s memo July 31 so principals will fully understand many obstacles to be overcome before we can comply with evacuation, other instructions given local managers.
“Chamber would appreciate Department’s comments re this memo and memo of July 31.”
Sent Department 3241; repeated Embassy Canton 1009.
- International Refugee Organization.↩