893.48/8–149
The British Embassy to the Department of State 51
Substance of Telegram From Foreign Office Dated 29th July, 1949
Since the position of foreign nationals in Shanghai continues to deteriorate, His Majesty’s Government would appreciate an early reply from the State Department on the question of sending relief ships.
The provision of such ships would materially ease the position and firms might thereupon be ready to carry on at any rate for some time longer. It has therefore become a matter of urgency to try to get some ships through, and we hope that the State Department will agree to an attempt being made on the lines previously suggested.
Our policy has been to keep a foot in the door in China, and we understand that the United States Government agrees with this policy. We have always recognised that the Communists will eventually try to force out our foreign trading interests when they are ready to conduct state trading on the recognised communist pattern, but if our interests are to be forced out now then we shall have nothing in hand with which to bargain.
Though Communist China will undoubtedly suffer if all trading with the West ceases, the Communists will acquire a valuable propaganda weapon and will represent us to the Chinese people as being responsible for all their hardships. It does seem to us therefore that we should continue to make some effort to keep a foot in the door. The Nationalist blockade, which both our governments regard as [Page 1125] illegal, is serving no useful purpose for the Nationalist cause, and it is not hurting the Communists as much as it is hurting the Chinese people and the foreign business communities. It is not a question of sending any supplies which will ease the position of the Communists, but of enabling foreign trading interests to survive.
- Handed to Mr. Sprouse by the Counselor of the British Embassy (Meade) on August 1.↩