102.22/6–2549: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received June 29—4:32 a. m.]
2487. Consulate General informed majority of ex-Navy employees not disposed to accept Consulate General offer and plan demonstration Monday. Offer is more than any reasonable interpretation their employment agreements albeit less than demands and local custom.
Unless instructed to contrary, I propose to stand firm and not seek police protection unless workers try to force entry into Consulate General. Since minority reported willing to accept offer and since any weakness may lead to further demands, I feel present offer affords as good a chance of settlement as any.
Pursuant to my letter to Chen Yi, I was invited June 22 to Foreign Affairs Bureau and on June 23 in my talk with Chang Han-fu I sketched this matter also. I did not particularly emphasize it in view of considerations set forth mytel 1310 [2310, June 16] and fact we were preparing make offer.
Sent Department; repeated Nanking 1348.