893.6363/4–3049: Telegram
The Consul General at Shanghai ( Cabot ) to the Secretary of State
[Received April 30—12:34 p. m.]
1451. Foreign business communities are increasingly concerned at lack of any clear cut policy statement from Washington re oil supplies for Shanghai. Entire local situation likely to collapse if oil supplies run out. I am sure Department will not wish US to take onus for such a situation without good cause although I am in favor of using threat of cutting off oil supplies to keep Communists in line, for example, in treatment of Embassy Nanking and American citizens and interests in Shanghai.
I must therefore respectfully insist that Department give me further indication promptly of its thinking in this and related matter other supplies for Shanghai. I, of course, appreciate that ECA aid must cease when Communists enter Shanghai but I nevertheless assume that Communists will be able to make some deal with oil companies if Department acquiesces. I feel it would be extremely helpful if oil company representatives were instructed when Communists approach them to state that reports of Embassy and Consul General, Shanghai, will largely determine extent to which oil supplies will be forthcoming.
Please instruct urgently.