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-2- British and oursolves for then to atay there as long as they could and to maintaira contaots with the chinose. In reply, I said I wished to discuss this in a what different context, though I might mention in pasaing that 1 did not believe that any representatione to the deneralissimo in the senne of the first question would be effectivo. I suggested that the question of bombing Shanghal had to be soparated from the question of blockado since quite different problema vera Involved. I referred to the situstion in Kong and the difficulties which had arisen in conneg- tion with the planea which the Chinese Communiats were endeavoring to obtain. As 1 understood the situation, the planes wore atill the object of litigation. The court of firot instance had given a negative decision but an appeal vss pending+ our information was that the Covernor of Nong Tong had shown Hinself to be particularly preoceupied, perbapa understandably 89, with the local situation and relations with his immodiate noighbors, and that perhaps he had not been rade suffleiently aware by London of the importence of the larger issues involved, including relations. The Governor had allowed Chinese Communists to have access to the aparo parta and mohinery while denying such access to the Chinese Nationaliats and oursolvos. The situation had now arison where somo 800 cons of thie equipment had been shipped on a British ship. presumably to a Chiness Communist port. this matter bad behonse kmown on the and our representa- tivem had been giver. a very bad tine this morning by a Senatorial It wst olear that this was only e SERVIDE beginuing and that this subject would become evera hottor. E Sone congressmen wero talking in terma of opposing MAP ship- ments and FOA assistanoe to Britsin unless this problem wore resolved, as vell as opposing State Department aporopriations In short, we were In for a prost deal of trouble. In view of this cituation, 1t seemed to me that neither of ue should maice any further moves in this field until wo had had en opportunity to go over this situation as 1t affected US-UX relationships The said be saw the s1 tuation in e sonowbat different perspective. In the first place, from the osbles be had seen, it asemed clear that thelegal handling of the matter on the United States side had been very Inept and full advantage had not been taken of the legal opportuaities. le had bean direstly made well avare of the hont that had been generating in the United states Congress on this subject. While he did not put it on the asme plano, be did wien to point TOP-SECRE

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    "ocrText": "-2-\nBritish and oursolves for then to atay there as long as they\ncould and to maintaira contaots with the chinose.\nIn reply, I said I wished to discuss this in a\nwhat different context, though I might mention in pasaing\nthat 1 did not believe that any representatione to the\ndeneralissimo in the senne of the first question would be\neffectivo. I suggested that the question of bombing Shanghal\nhad to be soparated from the question of blockado since quite\ndifferent problema vera Involved. I referred to the situstion\nin Kong and the difficulties which had arisen in conneg-\ntion with the planea which the Chinese Communiats were\nendeavoring to obtain. As 1 understood the situation, the\nplanes wore atill the object of litigation. The court of\nfirot instance had given a negative decision but an appeal\nvss pending+ our information was that the Covernor of Nong\nTong had shown Hinself to be particularly preoceupied,\nperbapa understandably 89, with the local situation and\nrelations with his immodiate noighbors, and that perhaps he\nhad not been rade suffleiently aware by London of the importence\nof the larger issues involved, including relations. The\nGovernor had allowed Chinese Communists to have access to the\naparo parta and mohinery while denying such access to the\nChinese Nationaliats and oursolvos. The situation had now\narison where somo 800 cons of thie equipment had been shipped\non a British ship. presumably to a Chiness Communist port.\nthis matter bad behonse kmown on the and our representa-\ntivem had been giver. a very bad tine this morning by a\nSenatorial It wst olear that this was only e\nSERVIDE\nbeginuing and that this subject would become evera hottor.\nE\nSone congressmen wero talking in terma of opposing MAP ship-\nments and FOA assistanoe to Britsin unless this problem wore\nresolved, as vell as opposing State Department aporopriations\nIn short, we were In for a prost deal of trouble. In view\nof this cituation, 1t seemed to me that neither of ue should\nmaice any further moves in this field until wo had had en\nopportunity to go over this situation as 1t affected US-UX\nrelationships\nThe said be saw the s1 tuation in e sonowbat\ndifferent perspective. In the first place, from the osbles\nbe had seen, it asemed clear that thelegal handling of the\nmatter on the United States side had been very Inept and full\nadvantage had not been taken of the legal opportuaities. le\nhad bean direstly made well avare of the hont that had been\ngenerating in the United states Congress on this subject.\nWhile he did not put it on the asme plano, be did wien to\npoint\nTOP-SECRE"
}