893.00/11–148: Telegram

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

2281. According press 30th, Shanghai being placed on wartime basis. Ministry National Defense has ordered total warfare status [Page 532] for Shanghai and has instructed Woosung–Shanghai garrison to expand activities to cover political and economic matters. Garrison Commander Hsuan23 raised to Commander in Chief, in which capacity he outranks Mayor. Local observers feel move will not immediately affect city administration, and that with Chiang Ching-kuo’s24 hold on political and economic life Shanghai broken through discontinuance price controls, Mayor Wu after 70-day eclipse will regain No. 1 position.

Sent Department 2281; repeated Nanking 1728.

Cabot
  1. Gen. Hsuan Tieh-wu.
  2. Deputy Economic Control Supervisor for Shanghai and elder son of President Chiang Kai-shek.