893.00/10–2651: Telegram

The Acting Secretary of State to the Consulate General at Hong Kong

secret   priority

1754. Dept desires ur assessment impact US and UN econ control measures on Commie Chi. Since Commie Chi econ vulnerability involves polit, mil, administrative and psychological as well as strictly econ aspects, narrow statistical approach less valuable this project [Page 2028] than broad evaluation of these among other directly and indirectly relevant factors.

1.
Effect of these measures on vol, value and character Hong Kong trade with mainland.
2.
Impact of controls various sectors Chi mainland urban economy.
3.
Impact on rural economy.
4.
Effects if any of difficulties caused by these measures upon operations of mil estab.

Suggest particular comments on effects produced by US–UN rubber, cotton, petroleum, other commodity, shipping controls and gen comments re use by Chi Commies of and public reaction to increasing police pressures in admin of econ programs.

Request tele reply embodying your best judgments on foregoing points with analytical corroborative detail follow air pouch soonest.1

Webb
  1. In telegram 1755 (priority) to Hong Kong, October 26, not printed, the Department requested an estimate of the effect on the Communist Chinese capacity to wage a Korea-scale war of a United Nations application of economic and shipping controls substantially similar to those of the United States (493.46G9/10–2651).