125.0093/7–3049: Circular telegram
The Secretary of State to Certain Diplomatic and Consular Offices in China 5a
ReDeptel 498, July 28; Nanking’s 1653 and 1657, July 30.6 Dept has reconsidered question retention full USIE local staff in duty status during suspension USIE activities Commie China. Policy stated Deptel 498, July 28 hereby revised.
Dept feels since USIE activities suspended by Commie auth it would be propitious moment to clear from staffs all posts concerned local employees without creation unusual situations as arose Shanghai connection ex-Navy employees.7 All posts at which USIE employees stationed therefore instructed give discharge notice to USIE local employees and pay them accrued and current annual leave from USIE local employee salary allotment. However, concur Nanking’s recommendation (Embtel 1632, July 278) Nanking, Shanghai, Peiping each may retain one local librarian provided no repercussion anticipated by [Page 1101] which Commie auths may demand retention entire USIE local staff. Dept assumes monitoring distributing bulletin local community can be handled by regular administrative staffs these posts.
While Dept not informed what severance pay may be agreed upon as discussed Nanking’s 1653, July 30, Dept feels since activities ordered stopped by Commie auths no greater payment should be made employees being discharged than made by local govt organizations discharging employees. Dept understands certain local govt employees Shanghai, for instance, given 6 weeks’ severance pay. At any rate Dept feels not more than 2 months’ severance pay shld be granted employees. Dept regards approach outlined Shanghai’s 3077, Aug. 6,9 good one. As with regular program employees Dept desires keep payments USIE employees low as possible order avoid setting undesirable precedent complicating problems other posts. However, final decision this matter discretion prin[cipal] off[icer].
When informing USIE local employees of discharge, be prepared make severance payments immed, obtaining if possible certificate complete satisfaction from employee. If unable obtain such certificate because failure refund retirement deductions auth include in severance payments amounts estimated near as possible to retirement refund which wld be payable by Civil Service.
You will be given severance pay allotment soonest.
This tel does not affect Am[erican] employees USIE program which will be dealt with in later communication.
Pls keep Dept informed.