393.1115/9–249: Telegram

The Consul at Shanghai (McConaughy) to the Secretary of State

3628. Your 1768, September 1, repeated Nanking 1047, telCan 642. ConGen can only assume Joint Chiefs had not seen its 3244, August 15, repeated Nanking 1769, Canton 1010, last section of which sets forth at length reasons why it is wholly impracticable to arrange suitable small vessels locally to transport passengers and their effects from Shanghai to rendezvous with Gordon outside Chinese territorial waters. These reasons are fully as valid today as they were on August 15.

Re possibility arranging entrance coastal vessels from Hong Kong, British ConGen informed me last night efforts in this direction have met serious obstacles in form of impasse over conditions which Nationalists would impose before granting safe-conduct. Suitable coastal vessels are all of British registry and British unwilling submit indignity strict control cargo and boarding and search on high seas. This means probable delay of some time at best before any British ships will come in. In any event passenger capacity these vessels strictly limited averaging 50 accommodations for Caucasians. Space demands for British subjects considerable.

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Explicit written permission received by APL from Communists for entrance and clearance Gordon as petitioned. Considered unlikely any serious incident involving vessel will be precipitated by Communists while she is in port.

Cancellation Gordon call this late date on what would seem to local foreign community very flimsy pretext would be catastrophe foreign community and serious setback American prestige. All our strenuous evacuation work of past several weeks would be set at naught.

Cancellation would furnish ammunition to Communist allegations we have vacillated in our transportation and communication policy and have not shown good faith in negotiations for resumption air and ship service.

Department will recall this is entirely commercial civilian venture with risks presumably fully underwritten by APL insurers.

Please inform CNO and Commander Seventh Task Fleet.

Sent Department 3628, repeated Canton 1073, Nanking 1902.

McConaughy