Foreign Relations of the United States, 1949, The Far East: China, Volume IX

893.50 Recovery/4–949: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

Shanghai, April 9, 1949—10 a. m.
[Received April 9—2:40 a. m.]

1130. From Merchant. Believe National Government in genuine financial death throes. Disturbed by implications (reference Shanghai’s Toeca 1316, April 8²²) Chinese Government expressed desire forego any assistance to Taiwan in favor neck or nothing gamble of remaining ECA funds on Shanghai gold market and silver troop pay. Proceeding Taiwan as planned will be revelatory but unavoidable.

Proceeding Nanking April 10 with Griffin and Parker to discuss financial crisis with Ambassador. Weather permitting, will return Taiwan April 11 and, assuming authorization requested negotiate by then received, will proceed at once, supported secondary stage by Griffin and Parker.

Inclined credit report Sun’s string played out. Believe many Kmt personalities including K. C. Wu and possibly T. V. Soong²³ will shortly converge on Taiwan. [Merchant.]

Cabot

22. Post, p. 755.
23. Former President of the Chinese Executive Yuan and Governor of Kwangtung.