893.50 Recovery/5–1349: Telegram
The Ambassador in China (Stuart) to the the Secretary of State
[Received May 17—2:54 a. m.]
1016. Tsingtao’s 142, May 10, repeated Embassy Canton 47, Department 183,16 impresses us as highly reasonable and we strongly recommend its points be given thorough consideration by Department and ECA with view to alleviation situation Tsingtao. Not only would provision coal and cotton till June 30 help maintain internal order and prevent public impression ECA aid tied to presence US Naval Forces there; important also would be contrast between working industry and maintenance reasonable level employment via ECA supplies before turnover and probable lack activity mills after turnover owing Commie raw cotton shortages.
Same time must keep mindful impression a mill at that city can be taken by Commies at will, which merely indicates shipment coal or cotton Tsingtao should, if possible, be in several small amounts each useful for minimum period, say 2 weeks. If June 30 announced as closing date ECA Tsingtao (reference telegram), we think efforts should be made maintain program until then barring Commie takeover.
Sent Department 1016; repeated OffEmb Canton 408, Tsingtao 56.
- Not printed; it reported the Consulate General’s view that the ECA should take all reasonable steps to maintain Tsingtao’s economy until its June 30 closing date there or until Communist takeover, whichever was earlier. Apart from humanitarian aspects and use of supplies to the greatest effect, it justified such a program on the grounds that it would be a demonstration of continuing American interest in the people without reference to the use of Tsingtao as a naval station and would create good will (893.50 Recovery/5–1049).↩