125.4553/9–349: Telegram
The Consul General at Hankow (Callanan) to the Secretary of State
[Received September 3—7:06 a. m.]
307. Depcirtel August 19, 2 a. m.6 Twelve USIS staff terminated C.O.B.7 today with 3 months’ severance pay. No direct threat to security American personnel but it was clearly intimated that failure of settlement would result in picketing our radio. Also failure make quick settlement now would likely have resulted refusal payment and demand salary payment during subsequent period negotiation which could easily exceed month and possibly involve greater final demands at close of period.
Most important is that matter kept out of hands local authorities. Also hoped this sets pattern severance regular staff, leaving room above 3 months’ severance pay for just payments those between 5 and 20 years service of whom there are several. Furthermore, impossible proceed closure preparations and separation regular staff with this matter dangling. Chief radio operator King Chao transferred September 3 C.O.B. to regular payroll from USIS payroll.
Sent Department 307, repeated Nanking 239; Shanghai 129.