124.933/9–2449: Telegram

The Counselor of Embassy in China ( Jones ) to the Secretary of State

2168. Following is termination agreement reached with employees, dated as of September 17:

This termination agreement is hereby entered into between representatives by the American Embassy (hereinafter referred to as the employer) and representatives of the Preparatory Committee of the Chinese Employees Union of the American Embassy (hereinafter referred to as the employees). The following termination terms have been negotiated and agreed upon between the employer and the employees. All employees of the Embassy proper and affiliated organization, the United States Information Service, regardless of whether they are already terminated or to be terminated in the future, shall abide by the terms of the present agreement.

(1)
When the employer terminates any employee, written notice shall be served 1 month in advance.
(2)
In addition to lump sum leave pay and retirement deductions, to which the employees are entitled and which shall be handled in accordance with the standing regulations, the employer shall issue severance pay to terminated employees.
(3)
(a) Severance pay equivalent to 2 months’ salary shall be issued to terminated employees whose length of service is less than 2 years, to be calculated according to the value of 1 United States dollar in terms of parity units.
(b) For employees whose length of service is 2 years or more, an additional severance pay equivalent to 1 month’s salary shall be issued, to be calculated in the same manner as that referred to in the preceding paragraph.
(c) If the total amount of parity pay and the salary of the last bi-weekly payment together come to less than 200 United States dollars, the employer shall make it up to 200 United States dollars.
(4)
The method of calculation of parity pay shall be based on the parity unit rate and United States dollar official exchange rate announced by the People’s Government. The factor for calculation has been determined by agreement between the employer and the employees to be 1 United States dollar equals 6.23 parity unit. In the future, if due to fluctuation of the parity unit rate and the United States dollar official exchange rate, the parity value of each United [Page 834] States dollar in people’s notes at the official exchange rate is less than actual United States dollar converted into people’s note at the official exchange rate, the parity pay shall be calculated on the basis of actual dollar pay converted into people’s note at the official exchange rate. If the parity value is higher than an actual United States dollar in people’s notes at the official exchange rate, parity pay shall not exceed 140 percent of actual United States dollar pay.
(5)
Parity pay shall be calculated according to the official quotation of the parity unit rate at Nanking on the date of termination of the employee and shall be issued not later than 2 days after the date of termination. If United States dollar drafts can be sold locally, parity pay shall be calculated and issued on the date of termination.
(6)
The above terms are determined in accordance with the spirit of the terms concluded between the employer and the employees of the United States Information Service at Shanghai on September 16, 1949. If at a future date they should be found to be at variance with the latter’s actual termination practice, they shall be modified as occasions warrant.
(7)
The present agreement shall be prepared and signed in duplicate, one copy each being kept by employer and employees.
(8)
The present agreement shall come into effect as of September 17, 1949.

Representatives of the American Embassy:

Representatives of the Preparatory Committee of the Chinese Employees Union of the American Embassy: Nanking, September 17, 1949.

Sent Department, repeated Shanghai 1174.

Jones