121.5493/12–1549: Telegram
The Second Secretary of Embassy in China (Bacon) to the Secretary of State
[Received 6:34 p. m.]
2599. Deptel 1291, December 9 and Embtel 2596, December 15. Atmosphere arbitration hearing notably better than at mediation where attitude officialdom extremely hostile. Decision itself unexpectedly moderate in language. No new conditions or penalties imposed nor do we see where Soule will be compelled sign any agreement. Decision will be published local press. It fails to disclose any hints regarding length of service, terms of employment, terms original offer, exact terms employees’ demands nor my efforts obtain action from Labor Bureau. However, abundantly emphasizes Soule’s continued refusal negotiate and assume responsibility for settlement even though Soule and I presented as artful dodgers. I am preparing pay off employees December 16 after which Soule will renew inquiry re exit permit.
We concur People’s Court unlikely reduce award. Embtel 2561, December 8 intended only as request permission submit to jurisdiction arbitration commission as distinguished from mediation proceedings.
Footnote: British at first agreed send representative to arbitration hearing but later withdrew, saying could not risk involvement without Foreign Office’s prior permission. As previously indicated, their personnel extremely anxious avoid any complications which might delay transfer to Peiping.
Pass Peiping Department’s discretion.
Pass Army.
Sent Department 2599, Department pass Shanghai 1272.