Evening star., 1949-08-01
Shunqhui Portents

The forcible entry into the American
Consulate in Shanghai by former Chinese
and Sikh employees OF the U. 8. Navy Is
the latest in a series of incidents involving
Americans and other foreigners in that
city which augurs i'll for the relations
between Red China and the Western world.
These disgruntled demonstrators are
following a pattern inaugurated by native
labor against foreign employers to enforce
their demands. The method consists In
occupying the premises and holding the
foreign STATS as virtual prisoners until the
demands are met. Judged by any normal
code, such tres spasses are clearly illegal.
But the Communist authorities refuse to
intervene, leaving the foreigners helpless
hostages Furthermore, the authorities
have refused to permit private concerns to
20 out of business, ordering them to con-
tinue to pay their native employees un-
employment bonuses and other compenSa-
tions The situation is aggravated by 4
number of arrests of foreigners by the
Communist police on trifiing charges and
their mistreatment, the most fragrant case
being the beating of our Vice Consul, for
which no amends have been made by the
Red authorities despite our diplomatic pro-
tests Indeed on that occasion, the Com
munist press backed up the police, warn
ing foreigners that this is what they might
henceforth expect If they did not watch
their step and show proper difference
toward the Communist new order.
Our State Department evidently takes a
dim view of the outlook, for it is warning
all Americans to get out of all parts of
China now in Communist hands or likely
soon to fall under Communist control. 1t
tells them that they are likely to be held
as hostages and that they can expect no
protection from their government. 1t
should, of course be remembered that we
have no diplomatic relations with the new
Communist regime. Nor is its present con-
duct toward foreigners likely to invite even
de facto recognition from us or other
Western nations.
Meanwhile, in Shanghai itself, the for
eign business community is plunged into
deepening pessimism. When the Com
munists first occupied the CITY, the strict
discipline OF the Red troops and the rela-
tive honesty of Red officials raised foreign
hopes that trade arrangements could be
made on a practical basis. But the gross
favoritism shown by the authorities toward
native labor in its most extreme demands
and lawless conduct combined with ex-
cessive red tape and inability of foreigners
to obtain police protection for their
property or persons has caused complete
disillusionment Most American residents
fear that they might as we'll write of
their investments and get out to save
their own skins.
It is against this dubious background
that the State Department is conducting
its review of our~.Far Eastern policy, en-
listing two eminent non governmental
consultants to lend objectivity to the sur
vey. Such action seems obviously required,
not only to plot out correct course but
also to meet the mounting tide of criticism
in this country directed against the
Departments past policy and its conse-
quences. The American public Is clearly
entitled to adequate information on a
situation which may require large-scale
commitments and grave decisions If the
national interest In the Far East Is to be
safeguarded. OF this Shanghai is warn
ing portent.