125.8576/2–349: Telegram

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

371. Urgently request policy statement and clarification ConGen responsibilities liquidation ECA Mission Shanghai. Mission planning move Canton target date February 15, leaving small regional office which also to be transferred when changeover occurs. ConGen asked accept custody large volume ECA administration property presently scattered throughout Shanghai; also large quantities program supplies. Alternative virtual abandonment account time limitation. Administration property comprises large fleet motor equipment, office equipment and supplies, household equipment et cetera, some belonging ECA, other inherited CRM–UNRRA,71 title uncertain and would require in addition vehicle parking space approximately one floor Moutrie godown for storage. Such space available only if rental godown No. 5 authorized, per ConGentel 254, January 26, denied Deptel 171, February 1.72

Saddling ConGen with responsibility for ECA program supplies might easily compromise its position vis-à-vis Communist regime and reduce effectiveness of representation. Furthermore responsibilities of this nature rather far removed from normal Consular functions.

If ConGen responsible administration property and liquidation program operations, considerably larger American staff required than otherwise necessary.

Request telegraphic instruction soonest.

  1. United States China Relief Mission and the United Nations Relief and Rehabilitation Administration. The CRM administered relief assistance under the agreement with China of October 27, 1947. For correspondence on negotiation of this agreement, see Foreign Relations, 1947, vol. vii, pp. 1293 ff.
  2. Neither printed.