396.1 GE/5–1754: Telegram

No. 190
The Under Secretary of State (Smith) to the Department of State1

secret
priority

Secto 242. Department pass Defense. Trevelyan called on United States delegate this afternoon and reported following results of morning conversation with Huan Hsiang2 (Secto 221).3

1.
All British nationals awaiting exit permits will be granted them.
2.
Trial of Ford, one of two British nationals in prison, will be expedited and early release expected. Communists have promised obtain information on other prisoner whom Trevelyan described as “deserter” and whereabouts unknown.
3.
Agreed British managers of British firms can be replaced with Chinese and former will then get exit permits.
4.
Communists have agreed to other requests related to British firms, including some which they had previously refused repeatedly. However, no progress made on question of united sugar [U.S.] dollar liabilities of British banks (Trevelyan said this matter being taken up with Department through London.)
5.
As to Christian case,4 which Trevelyan stressed, Huan said he in separate category because American. Queried as to policy towards Americans, Huan replied all Americans who have not violated laws free to leave but added there is also matter of Chinese detained in United States.
6.
In response indication by Trevelyan that separate approach being made on missing UNC personnel including specified American Air Force personnel, Huan admitted Communists held American fliers but denied holding other POWs. Huan said Chinese had perfect right hold fliers since they had “violated Chinese air space”. Not clear whether “American fliers” included Navy and Coast Guard personnel downed off Swatow. (Trevelyan requested no publicity be given this official admission holding fliers as Communists would immediately spot him as source and would prejudice his efforts behalf Americans.)

After reporting above conversation, Trevelyan, in contrast previous attitude (Secto 226)5 stated he felt he might play useful role as intermediary on ground he responsible for United States interest in Communist China.

He also influenced by fact that Communist mention detained Chinese gives possible bargaining area. Trevelyan stated, however, that he could not undertake intermediary role unless United States prepared in principle allow detained Chinese freedom go where they [wish?], excluding of course those actually serving prison sentences for common crimes. He pointed out he cannot make demand on Peiping that Americans be allowed freedom go where they wish unless United States willing to reciprocate.

We told Trevelyan we appreciated offer and indicated we wished move ahead as soon as possible. Department will appreciate unusual and possibly transitory opportunity this offers to move ahead on problem of both American civilian and air force personnel.

Please confirm most urgently we may give Trevelyan assurance he requires.

Smith
  1. Repeated for information to London and Hong Kong.
  2. Director of the Department of West European and African Affairs in the Ministry of Foreign Affairs, People’s Republic of China, and an adviser to the Chinese Delegation at Geneva.
  3. Secto 221 from Geneva, May 15, reported a conversation with Trevelyan about his negotiations with Huan Hsiang regarding British nationals in China. (396.1 GE/5–1554)
  4. Reference is to an American employed by a British firm in China who had been unable to obtain an exit permit; Trevelyan had made representations, reported in Secto 221, concerning him and other employees of the firm.
  5. Secto 226 from Geneva, May 16, reported that, although Trevelyan had recommended direct U.S.–Chinese negotiations at Geneva concerning the U.S. nationals in China (reported in Secto 221), the delegation recommended that any approach to the Chinese should be made through an intermediary. (396.1 GE/5–1654)