893.50 Recovery/4–2849: Telegram

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

1418. I am disturbed by publicity re Chinese matters emanating from Washington. Yesterday’s ECA statement re stoppage ECA shipments to Shanghai with particular reference cotton shipments has already caused strong reaction among workers in local cotton mills. Whereas I realize stoppage ECA shipments is inevitable under [President’s?] [Page 640] directives9 when Communists take Shanghai, it seems to me there is no necessity for emphasizing this fact now. We do not wish to be placed in position, I am sure, of disrupting Shanghai’s economy by premature stoppage shipments in event Shanghai is left dangling on vine by Communists nor do we wish appear be positively seeking disrupt Shanghai’s economy unless it becomes evident we must use this weapon bring Communists to book. Griffin concurs.

I have also noted reference to Nanking’s radio in Washington despatch. I do not need remind Department this is looking for trouble.

Sent Department 1418, repeated OffEmb Canton 357.

  1. See Mr. Butterworth’s memorandum of January 10, p. 613.