Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Great Britain Sir Oliver Franks, Philip Jessup, Walton Butterworth, and Mr. Thompson

EUR 308 DEPARTMENT OF STATE TOP SECRET Mernorandum of Conversation conf 94 DATE: tarch 27, 1950 SUBJECT: Blocitade of china and the Hong Zong Aircraft Problen PARTICIPANTS: Bir Oliver Pranks, British Ambassador Mr. Acheson lix. Jossup Outterworth COPIES TO: Mr. Thompson s/s, s/P, FE, EUR, o, H, L CERT and AND 1-1493 The Arbassador maid be had baen instructed to put tuo questions to no. The firet was whether tre veze prepared to use our influonce with the Nationalist Government to the end that it would terminate the blockede of the Chinese mainland and to coaso ite bombing attacks on Chinose oities. The accond question was, 1f we were not prepared to do 30, what would be our attitude in the event the Meitish them- selves uniertook to brosic tho blockade; that and not imply that the Britimh Dovernment's poliey would be determined by our attitude but that our attitude was an important olement of the situation. Tho Ambassador pointed out that British merchents, particularly in Shanghai, had sbout resched the end of thoir tethor. The British Ooverament did not look at this nattor narrowly fron the point of view of the econonie situation, although they hoped that by hanging on in Cbina they could obtain nome egonomic advantage. They recognised the very real possibility that they would not be able to heng on for very long. The British believed, however, that apart from economic questions, 1t was to the advantage of both the Britiah DECLASSIFIED STATE 4-16-79 SOP SECHEI BYNLT WLT 78.33 the. NARS, Date