611.9331/3–2549: Telegram

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

1000. I am in hearty accord with all points made in Nanking’s 603, March 18. However, I feel we should investigate further whether Communists would encounter insuperable difficulties in using Hong Kong as transshipment point in absence new Hong Kong trade controls which we have no reason anticipate. Also merely nominal penalty imposed for nonproduction consular invoice at US entry port might emasculate this weapon in large degree.

Sent Department, repeated Nanking 589, Canton 208.

Cabot