894A.00/6–1749: Telegram

The Consul General at Tientsin (Smyth) to the Secretary of State

430. Growing discussion among Chinese here re Formosa indicates misunderstanding its status. Many believe it virtually US territory, administered indirectly by MacArthur. Though many better educated disagree, average Chinese believes US considers Formosa of prime importance to Pacific defense line and that its “loss” would be serious blow. Result is widespread feeling US will not “let Formosa go” at any cost.

Communist soldiers been told for some time they will attack and take Formosa. If Communists gain it by military or other means, many anti-Communist Chinese feel Communists will make greater propaganda capital than even Mukden, Yangtze and Tsingtao developments, which exploited with considerable effectiveness. General opinion these Chinese is that rapidly diminishing means of US reaching Chinese public be used to state US policy re Formosa. This group feels timing important so Communist occupation Formosa will not seem US delays giving Communists further chance portray US as “confused and impotent paper tiger”.

Sent Department 430, repeated Nanking 257, Shanghai 293, Peiping 183, OffEmb Canton 430.

Smyth