Memorandum, State Department Summary of Telegrams

NCT(Naval Aidel245 OFFICE OF THE SECRETARY OF STATE WASHINGTON DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 September 18, 1951 By. DEP NLT, Date 9-5-85 TOP SECRET SUMMARY OF TELEGRAMS CHINA Consul General McConaughy in Hong Kong has submitted his comments on Mr. Morrison's opposition to a UN blockade of the China coast, as propounded in the US-UK talks in Washington last week. He says Morrison still uses the standard British argument against all efforts to exert economic pressure on the Chinese Communists, namely that: 1) the blockade would likely be uneffective ; and 2) it might cause Communist China to rely more heavily on the USSR. McConaughy says that although the blockade would not be complete it would hit Whompoa, Tsingtao and Dairen very hard, would increase the strain on China's economic and financial system and aggravate dissatisfaction with the results of the Korean war. Moreover, says McConaughy, the Chinese Communists are already so thoroughly dependent on the USSR for weapons and ammunition for the Korean war that any additional degree of dependence resulting from the imposition of a UN blockade could make little practical difference, and might even work in our favor, since the point has now been reached where additional dependence on the Soviets may hasten the day when the Chinese become dis. - illusioned in Russian aid. EGYPT A Palace representative told the British Ambassador in Cairo on Sunday that at the opening of the Wafd leaders' meeting on Saturday the majority of those present were in favor of the immediate abrogation of the 1936 Anglo-Egyptian treaty, but that he had been able to get action on this postponed for about ten days. He said he hoped that meanwhile the British would come forward with some constructive new pro- posals. The British Ambassador has suggested to his Foreign Office that Mr. Morrison should send an immediate reply to the last Egyptian communi- cation and indicate that interesting proposals" will be forthcoming soon. Ambassador Caffery agrees with his British colleague that it is important to tell the Egyptians without further delay that something interesting is in the offing, and thus attempt to prevent any Egyptian announcement concerning abrogation of the treaty. GERMANY The Soviet General Chuikov has sent an official protest to Mr. McCloy concerning the propaganda pamphlets which have been dropped by balloon (and allegedly also by American planes in the Berlin air corridor) over Soviet territory in Germany. Chuikov's protest says that pamphlets are hostile to the Soviet Union and the balloons constitute a TOP SECRET