893.00/5–1849: Telegram

The Ambassador in China (Stuart) to the Secretary of State

1060. Re Shanghai’s 919, May 16, repeated Department 1656, EmbOff Canton 461. While public utilities, dock freight yards, et cetera, usually considered legitimate targets all-out warfare, we feel [Page 333] Generalissimo would pull strategic blunder if lie decides follow suspected demolition policy. With, destruction power company, factories, shipping facilities by retreating Nationalist forces, Communists would have perfect alibi to present Shanghai populace for inability make city going concern blaming “treacherous Kmt forces” for deliberate destruction of “people’s” enterprises. If, on other hand, Generalissimo were to complete removal military personnel equipment and city were turned over to Communists in more or less working order, burden would be squarely on Communists’ shoulders with no scapegoat to turn to.

Economic-financial difficulties which over period of time are bound to make Shanghai almost insurmountable task for Communist authorities enumerated Shanghai’s 1642, May 13, repeated Nanking 910.31

With above in mind, request Department’s opinion feasibility EmbOff Canton approaching informally appropriate Generalissimo-controlled official, such as Wu Tieh-cheng, stressing our concern for protection American interests and pointing out benefit Nationalist cause would gain in long run when it became apparent that Communists were having difficulties operating Shanghai successfully even though they took over city intact.

Sent Department 1060, repeated EmbOff Canton 443, Shanghai 603.

Stuart
  1. Not printed; it reported activities of the British community.