893.504/4–1349: Telegram
The Consul General at Tientsin (Smyth) to the Secretary of State
[Received April 15—4:22 a. m.]
238. Since Communist occupation Tientsin 3 months ago foreign companies have had considerable difficulties with labor. Communist authorities have consistently taken side of labor. American firms which have had most trouble are Texas and Karagheusian although nearly all have had some labor trouble.
White, local manager Texaco, in letter dated April 7 addressed to Bieling, Texas manager Shanghai, described Texas labor troubles here. Letter sent by ordinary mail to Shanghai. I suggest ConGen Shanghai obtain copy that letter from Bieling and send copies to Department. If letter does not arrive Shanghai, please inform us and we will summarize.
In dealing with labor troubles of foreign firms, Communist authorities willing to mediate but their decisions very biased in favor of labor. If firm not willing accept decision, Communist authorities then say firm at liberty to settle direct with laborers. As this means firm at mercy of laborers, without police protection, result is firms accept mediation, however unreasonable. Karagheusian has had particularly difficult time.
[Page 1077]Number of foreigners, including a few Americans, have been haled into People’s Court on labor and other matters. Some decisions fair, but generally biased in favor Chinese. Report on People’s Court will be telegraphed shortly.
Sent Dept; repeated Nanking as 154, Shanghai as 159 and Peiping as 101.