Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON July 27, 1949 SUMMARY OF TELEGRAMS CHINA Embassy London reports that the British Foreign Office, in reply to expressions of our interest in establishing controls over exports to Communist China, now plans to reply that while the UK shares our desire to control the flow of strategic goods to Communist China and North Korea, the British do not feel justified in extending such controls to cover trans- shipment from Hongkong and Singapore until Belgium, France and the Netherlands have made a similar commitment covering both their metropolitan and their colonial territories. When the UK has these assurances, as well as a US statement that SCAP will exercise simi- lar controls, it is willing to extend control over prohibited list items to cover Hongkong and Singapore transshipment. The UK is not yet convinced of the effectiveness of instituting control over re- stricted list items but suggests further consultation. Embassy Office Canton reports its estimate that Canton will fall to the Chinese Communists in mid-August. The Embassy Office states that the Nationalist troops between the Communists and Canton have poor leadership and low morale, and expects much defection and little fighting. In view of the increasingly intolerable situation for American citizens in Shanghai, we have recommended that our Consul General there suggest to the principal representative of the American community that he start US citizens on a movement for application for exit permits. In consultation with other governments, we will endeavor when we have received specific information on the number of foreign na- tionals desiring to leave Shanghai to arrange suitable transportation facilities. We are taking similar action in Nanking and Hankow. PHILIPPINES We have instructed Embassy Manila to indicate to Quirino that the President would be happy to have Quirino visit Washington at this time. The Embassy is to inform Quirino that: 1) the President will not be able to endorse any measures relating to the DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- He NARS, Date 11-13-10