CO537-5132 — Page 125

PFE 746/18/110

[This telegram is of particular secrecy and should be retained by the authorised recipient and not passed on].

Cypher/OTP

DIPLOMATIC DISTRIBUTION

FROM NANKING TO FOREIGN OFFICE

Sir R. Stevenson

No: 1057

D. 7. 20 a.m. R. 9. 8 a.m.

19th July, 1949, 19th July, 1949.

19th July, 1949.

Repeated to Shanghai,

Washington, Paris Saving.

27J 1549

IMMEDIATE

SECRET

Addressed to Foreign Office telegram No. 1057 of 19th July, repeated for information to Shanghai, Washington and Saving Paris,

Your telegram No. 802, and Shanghai telegram NT No. 315 to Nanking: Order to close the Information attached

Department.

-

Difference of treatment of United States

information services in various places (i.e. closure

at iiankow and Shanghai but no interference at Nanking and Feking and certain restrictions at Tientsin) suggests variations of interpretation of general directive from the Central Chinese Communist Party authority. There may be some significance in the fact that the present action in Shanghai closely follows the publication in United States information services bulletins of the official United States Government version of the arbitrary arrest and brutal treatment of United states Vice Consul Olive by Communist police at Shanghai for trivial and, in fact, trumped up offence (Communist officially inspired press accounts of which were entirely false).

2. This may of course be the prelude to foreign press black out in the progressive establishment of a police state in China. As things are at present however, we might wisely defer retaliatory action so long as news from abroad can continue to filter in through such official information services as are still allowed to operate, and also through Reuters. I feel that on balance it is important to avoid the risk that by the premature closing of the London office of the new Chinese news agency (which seems to be the only

/practical form

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