393.115/11–849: Telegram

The Chargé in China (Strong) to the Secretary of State

Cantel 1265. Foreign Minister Yeh informed afternoon November 7 of information contained reftels cited telCan 745, November 5, repeated Taipei 434, Shanghai 2224, Hong Kong 279 as well as US attitudes.

Yeh was obviously embarrassed and hastened to explain he first heard of matter on VOUSA broadcast morning November 6; shortly thereafter he received British protest. Following day-long consultations Premier Yen Hsi-[shan]—as Minister National Defense—issued order to CAF forbidding it to contact foreign representatives on such matters and ordering that no vessels were to be bombed either in territorial waters or on high seas without instructions from Ministry National Defense which instructions to be countersigned by Minister Foreign Affairs. Minister Foreign Affairs still controlled policy on closure and CAF had no right to take such action which did not represent policy Chinese Government. Requested this matter be kept confidential [in] order not permit Communists make capital of it.

Yeh then added he wished state that where it could be kept effective Chinese Government intended continue closure policy but said he wished it understood he would never consider it advantageous to bomb foreign shipping. He then launched into detailed account of bombing of British vessel Anchises “by mistake owing to complete lack national markings visible from plane” and said Chinese Government willing pay compensation for this incident.

Yeh expressed appreciation for attitude US Government toward closure and hoped US would continue dissuade US vessels from violating [Page 1162] it. We then reminded Yeh the US does not recognize closure and stated that Department neither dissuades vessels from entering ports declared “closed” nor advocates entrance US vessels such ports but merely points out prevailing circumstances, whereupon individual shipping companies must determine own course of action.

Although he had no right to do so, Yeh said he would advise confidentially CAF now had orders to bomb transport and related facilities in Communist areas and suggested US Government instruct American ships leave Communist ports. He desired US Government inform him which vessels in which ports and when would leave in order that safe conduct could be assured. Further suggested American flag be displayed prominently in order to assure identification. Said reason for this was that CAF could not be sure always hit docks and godowns instead of nearby vessels. Actually, he said, he was not advocating that American ships not enter blockaded ports and suggested we not overlook the “nuance” intended.

What he plainly meant was that any US vessel entering Communist port would not be molested; rather the contrary, that Foreign Office only wished know their whereabouts and schedule in order to avoid any possibility of damage to such vessels. (No mention made of similar attitude toward British shipping.)

We agreed to Yeh’s request that information “closure” continuation and his “nuance” be transmitted to Department. He then added that in last 10 days many Chinese Communist vessels had registered under Panamanian and other Latin American flags from Hong Kong and thus gained international protection. The ships belong to Shanghai shipping firms with offices in Hong Kong.

Sent Department; repeated Taipei 208, Shanghai 569, Hong Kong 54; Department pass Taipei, Shanghai, Hong Kong.

Strong