893.00/3–2648: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

694. ReContels March 25, 470 to Embassy (669, to Department) and 676 to Department44 (476 to Embassy). On basis preliminary study available information, we inclined toward view that:

1.
Authorities have actually uncovered Communist organization operating in local utilities and factories.
2.
Those arrested probably include both genuine Communists and workers unwittingly duped into identifying themselves with Communist organization.
3.
Situation remains uneasy as result of anti-CC movement in labor unions which has been aggravated by Communists, and of fear among laborers resulting from their uncertainty whether their names are on list of several hundred names of “Communists” which authorities have not yet made public.

Please pass to Military Attaché as combined report of ConGen and Assistant Military Attaché.

Sent Embassy as 487; repeated Department.

Cabot
  1. Latter not printed.