390.1115A/78: Telegram
The First Secretary of Embassy in China (Smyth) to the Secretary of State
[Received October 22—3:45 a.m.]
394. Shanghai’s 1126, October 21, 5 p.m., withdrawal of Americans from Shanghai. The staff of the Embassy here is in complete and thorough accord with the views expressed by Mr. Butrick.
News of the rates mentioned in Shanghai’s telegram was received here last night over a Shanghai radio broadcast and has already had a most serious effect on the local withdrawal program. Travel agencies here report that this morning a number of Americans who had made reservations have stated that they must cancel them if the rates are not reduced. I would not be frank if I did not say that news of these rates has aroused bitter criticism and resentment among local Americans. Americans here at first were greatly appreciative of the action of the Government in arranging for the sending of special steamers to facilitate their withdrawal. A number are now saying that those Americans who are loyally heeding the Government’s suggestion to withdraw are being made to suffer through these excessive rates, when they had naturally expected that in this emergency they would receive consideration in the form of reduced rates.
The Embassy here strongly urges that immediate action be taken to reduce the rates in question; if this is not done, it is highly possible that the withdrawal program here will practically come to an end, except for those few persons whose passage is paid by the Government or by the larger business firms.
Sent to the Department. Repeated to Chungking and Shanghai.