693.0031/4–549: Telegram
The Consul General at Tientsin (Smyth) to the Secretary of State
[Received April 7—12:51 p. m.]
211. Thus far Communists have not promulgated any law for regulations directly discriminatory to resident foreign firms or foreign businessmen. However, many Tientsin foreign traders are growing more pessimistic over future chances of doing business here and believe their days in North China numbered. There seems little doubt that Communist desire trade with foreign countries and will make efforts to revive full scale exports and imports but, in doing so, local businessmen expect Communists will show increasing preference for and eventually deal at this exclusively through government organizations and private Chinese traders. This view stems from Communist anti-foreign propaganda plus a general apathy Communists have shown in dealing with individual technical problems of reconstituting trade, etc., presented to them by foreign businessmen, while Chinese businessmen, on other hand, seem to have had warmer reception. Also, Chinese businessmen may travel freely in Communist territory while resident foreign businessmen required obtain permits which are issued slowly. In law enforcement, Communists seem to be more severe with foreigners than with Chinese.
Foreign businessmen felt that Communists may perhaps never pass any laws or regulations directly against them but passive resistance to doing business with and through them can accomplish same purpose.
Local press has consistently hammered at the “losses” to China under former system or [of?] “colonial” and “imperialistic” trading and that trade must be bent to needs of country as whole rather than relatively small Tientsin business community.
In our telegram 130, March 9[10]36 (sent from Peiping as 400 March 13 [10]) we reported that consensus of opinion of number of Americans and other foreigners here was that Chinese Communists would prove to be more Chinese than Communists. Opinion on this point has changed considerably during past month and majority of foreign businessmen now either (1) feel Communists will prove to be more Communist than Chinese or (2) have not yet formed definite opinion although tending to be more pessimistic than previously. The American businessman mentioned in reftel continues to feel Communists will prove to be more Chinese than Communist, but he is in minority. While larger foreign companies (mostly British and American) do not yet talk of folding up, smaller foreign businessmen are reaching point where they cannot afford to hold on longer. Over 100 [Page 929] Jewish shopkeepers of Soviet nationality are planning to leave for Palestine in near future.
Sent Department as 211; repeated Nanking as 133, Shanghai as 134.