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-2- Mr. Hopkins commented upon the general situation in Shanghai, stating that he had changed his earlier view, expressed when he returned to this country, that the situation in Shanghai might not be entirely hopeless. He said that as a result of the February 6 bombing of the Shanghai Power plant and resulting developments he now saw no hope in the situation. He said that the bombing had resulted in the passage of control of Shanghai from the civil to the military elements. Commenting upon the plan for escape by sea, he indicated that it held the utmost hazard for anyone attempting it and he pointed to his own previous develop- ment of a similar plan which, at the time, he had given "about one percent chance of success. # The Secretary explained that the Department had been following the situation of Americans in Shanghai closely and enter- tained the utmost concern for their plight. He said that the Department was taking every step that it considered might be at all effective to solve this problem. With reference to Mr. Herod's previous suggestion (in a letter) that the treatment of these Americans be fully publicized, the Secretary said that action on this point would be taken. He said that the Department was now acting upon a plan for concerted action with other interested Governments in an attempt to arrange the evacuation of foreign nationals at Shanghai. Consideration was also being given to bringing the question up in the UN, although admittedly at this time the chief value of this step would be the publicity given the situation of Americans in Shanghai. He explained that the efforts of the British on our behalf were limited by their lack, as yet, of full diplomatic relations with the Communist regime. He also stated that Consul General Clubb at Peiping had been instructed to endeavor to talk directly with the highest Communist authorities there on the situation of Americans and that the question of Americans held at Shanghai would be to the very front in any inter- view that could be arranged. The Secretary asked that the information he had given concerning the concerted approach to the Communists and Mr. Clubb's intended approach to the Communist officials be held in confidence by the two visitors. Mr. Herod said that he and Mr. Hopkins, in respecting this confidence, would pass on to other interested businessmen their view that this Government was taking definite measures to deal with the situation, any results of which would probably be known within the next eight or ten days. The Secretary said that another meeting could be held at that time if nothing positive had developed. ANATIONAL Mr. Barnett I a

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    "ocrText": "-2-\nMr. Hopkins commented upon the general situation in\nShanghai, stating that he had changed his earlier view, expressed\nwhen he returned to this country, that the situation in Shanghai\nmight not be entirely hopeless. He said that as a result of the\nFebruary 6 bombing of the Shanghai Power plant and resulting\ndevelopments he now saw no hope in the situation. He said that\nthe bombing had resulted in the passage of control of Shanghai\nfrom the civil to the military elements. Commenting upon the\nplan for escape by sea, he indicated that it held the utmost hazard\nfor anyone attempting it and he pointed to his own previous develop-\nment of a similar plan which, at the time, he had given \"about one\npercent chance of success. #\nThe Secretary explained that the Department had been\nfollowing the situation of Americans in Shanghai closely and enter-\ntained the utmost concern for their plight. He said that the\nDepartment was taking every step that it considered might be at\nall effective to solve this problem. With reference to Mr. Herod's\nprevious suggestion (in a letter) that the treatment of these\nAmericans be fully publicized, the Secretary said that action on\nthis point would be taken. He said that the Department was now\nacting upon a plan for concerted action with other interested\nGovernments in an attempt to arrange the evacuation of foreign\nnationals at Shanghai. Consideration was also being given to\nbringing the question up in the UN, although admittedly at this\ntime the chief value of this step would be the publicity given the\nsituation of Americans in Shanghai. He explained that the efforts\nof the British on our behalf were limited by their lack, as yet, of\nfull diplomatic relations with the Communist regime. He also\nstated that Consul General Clubb at Peiping had been instructed to\nendeavor to talk directly with the highest Communist authorities\nthere on the situation of Americans and that the question of\nAmericans held at Shanghai would be to the very front in any inter-\nview that could be arranged.\nThe Secretary asked that the information he had given\nconcerning the concerted approach to the Communists and Mr. Clubb's\nintended approach to the Communist officials be held in confidence\nby the two visitors. Mr. Herod said that he and Mr. Hopkins, in\nrespecting this confidence, would pass on to other interested\nbusinessmen their view that this Government was taking definite\nmeasures to deal with the situation, any results of which would\nprobably be known within the next eight or ten days. The Secretary\nsaid that another meeting could be held at that time if nothing\npositive had developed.\nANATIONAL\nMr. Barnett\nI\na"
}