800.8890/3–1749: Telegram
The Consul General at Tientsin (Smyth) to the Secretary of State
[Received March 20—10:16 p. m.]
140. British Butterfield and Swire SS Hanyang which arrived Taku March 14 received permission from local port, authorities to come up Haiho River to Tientsin but on March 16 Communist military authorities refused allow vessel proceed flying British flag. As Hanyang unwilling accede condition no flag, she proceeding outside Taku Bar and there awaiting passengers and cargo. Hanyang which is proceeding [Page 917] Hong Kong will be first vessel to take passengers from Tientsin since capture city. (Among passengers will be Miss Foss and Mrs. Adams of ConGen staff, and 3 Americans of local ECA5 office, Ivy, Wildner and Moore. All have received exit permits.) Permission not granted for export cargo.
Cargo will be confined to merchandise not destined for US or Europe in accordance understanding B and S with other members shipping line conference (Tientsin sub-bureau of Shanghai, New York and Transpacific Freight Bureau) not to bring ships to this area unless certain facilities guaranteed by authorities. Call of Hanyang is test case. If all goes well other members conference plan bring ships in. American Mail and American President lines have each one ship tentatively scheduled for call at Taku Bar end March.
Authorities have so far not issued comprehensive regulations covering shipping and call of each ship is subject of prolonged negotiations. Communists appear desirous of reviving trade but are suspicious of established foreign banking, trading and shipping organizations and seem to be endeavoring to bypass them by having recourse to small tramp steamers who trade on barter basis. Call of Cloverlock (our telegram 134, March 156) and arrival at Tientsin from Hong Kong on March 14 of Panamanian SS San Jacamino reportedly under auspices Tientsin Board of Trade, Communist organ, are examples. Understand other small vessels have left Hong Kong bound for Tientsin; another Panamanian SS Grand due here tomorrow.