Telegram from Ambassador Walter Gifford to Secretary of State Dean Acheson

INCOMING TELEGRAM Department of State 49 TELEGRAPH BRANCH 24-M-X CONFIDENTED Control: 5159 Action Rec'd: May 10, 1951 EUR FROM: London 6:52 p.m. Info TO: Secretary of State DECLASSIFIED SS G E.O. 12065, Sec. 3-402 NO: 5880, May 10, 8 Pomo SISA State Dept. Guideline, June 12, 1979 SFA By NLT HL B NIACT. NARS, Date 10-29-11 P FE SENT DEPT 5880; RPTD INFO PARIS 2376. UNA OLI Churchill opened debate on strategic exports to China. He CIA reviewed developments subsequent Brit Govt recognition ARMY Chinese Commie regime culminating in situation existing to- DCL day which he described as critical mentioning brutalities DCR within China and state of war which existed between Commie EyRs China and UN. Referred preponderance burden Korean fighting being borne by US and cautioned against criticisms US in view this situation. He drew considerable fire from govt benches by force with which he emphasized right US expect cooperation and statement close collaboration US-UK necessary "at all costs". Praised General Marshall as one of world's leading statesmen and said he had "read with emotion" Marshall's testimony before Senate comite. Grouped Bradley and Eisenhower with Marshall as outstanding and worthy advisors to Pres. Re vulnerability Hong Kong, Churchill stated this shld not (rpt not ) be controlling factor and stated he did not believe war wld come as result particular incident altho an incident might well be made the pretext. He felt that any threat to Hong Kong could be met and that US wld undoubtedly join in any necessary measures. Altho Churchill was attempting and did make very serious speech, there were many noisy interruptions including another sharp exchange between Churchill and Shinwell arising over Churchill reference Shinwell's speech in which press quoted him as saying sitn in Korea wld now (rpt now) improve in view MacArthur's dismissal. In answer Shinwell challenge produce documentary proof, Churchill later passed to Shinwell what appeared to be copy London TIMES with apparent assurance "quotation he had given was essentially correct. with particular ref additional export control measures, Churchill's only request was for immed imposition embargo further rubber shipments to China. Hartley Shawcross, Pres BOT replied. Gave brief outline Brit export control TALE REPRODUCTION OF THI MESSAGE IS PROHIBITE