693.0031/3–3049: Telegram

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

1040. Delegation of Chinese shipowners association returned from Nanking March 26 after discussing with Acting President,26 Prime Minister,27 Minister of Communications,28 Minister Economic Affairs29 and other officials revival Chinese shipping to North China Communist ports. Officials including Minister for National Defense30 agreed permit ships sail after operational details and barter arrangements have been worked out. Central Bank [at] Shanghai, in cooperation with Central Trust, is now planning initial shipment for Tientsin of 664 tons sugar to be exchanged for 1500 tons soda ash. Central Bank will arrange local clearances from Customs Bureau [of] Shipping and Navigation and Shanghai Woosung Garrison. Ship will be nominated by shipowners association as soon arrangements completed. Surreptitious junk traffic is believed underway between Communist and National ports. Local Customs official states despatches from Tsingtao [Page 926] indicate junks for northern ports have been cleared from Tsingtao by local military without Customs knowledge. Same procedure by military certain other ports probably including some on south shore lower Yangtze River. Local press today published account of junk that sailed from Tientsin to Ningpo with cargo and passengers.

Cabot
  1. Marshal Li Tsung-jen.
  2. General Ho Ying-chin.
  3. Tuan Mu-chieh, also known as Tuan Mu-kai.
  4. Sun Yueh-chi.
  5. General Hsu Yung-chang.