170
24 AUG 1949
This telegram is of particular secrecy and should be. retained by the authorised recipient and not passed on].
Cypher/OTP
DIPLOMATIC DISTRIBUTION
FROM SHANGHAI TO FOREIGN OFFICE
His Majesty's Consul-General D. 4.44 p.m. 19th August, 1949. No: 694
R. 6.38 p.m. 19th August, 1949.
18th August, 1949.
PRIORITY
SECRET
Addressed to Manking telegram No. 406 of August 18th, repeated for information to Foreign Office and Singapore.
The British Emergency Flanners Folicy Committee has taken note of message conveyed in your telegram ho.472 to me.
They made two comments, that it makes no reference to ships which are essential both for those who remain and for those who must leave, and that there is no mention of wider considerations of British policy in the Far East.
2. I have accordingly given the committee as much information as is necessary to enable them to realise what is being done to get ships here and I have assured them that dis majesty's Government has so far approved the policy of keeping a foot in the door here in China. They remain however deeply concerned not only about the future of the British community in Shanghai but also about the hole of this country with which they are associated in the Far East. They are particularly worried about the effect of the two external factors over which they have no control, namely American policy, particularly its support of the blockade and recent trends in ong Kong.
3. As regards American policy, while british business men agree that new Chinese authorities are Communist in ideology they are not prepared to agree with the Americans that refugee Communists are the tools of Moscow, that no compromise is possible with them, and that there is no future for foreign business. On the contrary they still believe the Chinese will maintain their independence and that given time they will realise their need of help from Democrats and turn increasingly towards them.
4. So far as the blockade is concerned British business men deplore as entirely fallacious the American
/view that the
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