893.00/3–2548: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received March 25—12:27 a. m.]
669. At joint press conference March 24 given by Mayor and garrison commander Yuan Ti-wu it was announced that large number arrests made locally as result uncovering gigantic Communist plot to “create widespread disturbances and destruction among city’s important buildings and utility plants” in late March and in April and May. Representatives various people’s organizations being invited to meeting today to inspect evidence substantiating arrests. Mayor [Page 166] warned that anyone, including families of arrested, attempting to start any protest movement is liable to arrest.
Two officers ConGen told last night by labor leader that 30 British tramway and number of Shanghai power company employees arrested yesterday, and that he expected labor trouble in these two companies would break out today or tomorrow as result of arrests, with trouble possibly extending to other utility companies; informant also stated that arrested were not Communists but that their arrests are connected with inter-factional fight within Kmt. He said officials alleging Communists’ activities to open way for use of arms in case trouble develops in labor circles.
Military Attaché reports increased activity today by riot squads indicates that trouble is expected.
Sent Nanking as 470; repeated Department as 669.