102.22/6–1049: Telegram

The Consul General at Shanghai ( Cabot ) to the Secretary of State

2205. Re ConGentel 2153, 8th. Approximately 35 Sikhs, former USN employees NOB,44 today forced their way into Consulate and personally served petition on Consul General demanding 2 weeks’ pay in lieu separation notice and making strong representations for 2 or 3 months’ salary bonus on premise (1) that US Government pledged continued employment and (2) ECA45 and … 44 had paid 3 months’ separation bonus for long service and 2 months for short service plus lump sum leave payments. Group departed reluctantly led by Indian CG46 who personally interceded. Even larger number Sikhs may return.

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Consul General representing Navy definitely did not pledge other than temporary employment as record discloses. Have verified, however, ECA paid separation bonuses as represented …).

Over 300 Chinese ex-Navy employees who petitioned previously for severance payments reportedly organizing balance dismissed employees and making representations local authorities with planned mass visitation and demonstration Consulate General today or tomorrow. Time not propitious intervention Communist authorities who would probably side with laborers, perhaps holding some office of Consulate General liable. Incident might be useable by Communists for propaganda purposes and highly detrimental American interests Shanghai.

Urgently request Department follow through with Navy to (1) provide specific list by telegram soonest ex-Navy employees entitled severance benefits in lieu notice and (2) release funds for payment up to maximum 2-month salary customary separation allowance paid in Shanghai. Would endeavor settle for less but might be forced concede bonus comparable ECA. Suggest possible alternative payment from Department emergency fund reimbursable by Navy.

Cabot
  1. Naval Operating Base.
  2. Economic Cooperation Administration.
  3. Consul General.