893.6463/4–2749: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received April 27—6:11 a. m.]
1388. I am reliably informed local head Shanghai Power Company is greatly discouraged at situation and has sent long strongly worded [Page 1009] cable to his Department in which he wants have assurances continued petrol supply or to leave Shanghai without his foreign staff. Although estimates vary, effect either withdrawal foreign staff or stoppage petrol supplies would probably be grave if not catastrophic for entire city. I feel this emphasizes need for approach to Communists mentioned in my preceding telegram23 since we cannot wait until Communists enter Shanghai before Power UK [Co.?] staff has reached decision in one way or another.
I understand American and Foreign Power [Co.] has written local plant completely off its books and therefore cares little what happens to it. Department, of course, knows it supplies most of city power and is essential not only for lighting but also to keep mills running, provide power for telephone company, pump water, sewerage, et cetera.
I believe in any approach Communists, it should be made clear continuance fuel oil supply for any western source depends favorable recommendation French, American and British Consuls General, Shanghai. I trust Department will get such commitments from companies and British.