102.22/7–849: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received July 8—11:59 a. m.]
2662. Re mytel 2643, repeated Nanking 1465, 7th. Thomas designated represent Consul General in discussing ex-Navy employees severance pay contacted Foreign Affairs Section Bureau Public Safety through Chinese interpreter 8:30 a. m. That office denied any knowledge of appointment, said not within their jurisdiction, should be referred Foreign Affairs Bureau SMCC. Thomas then had Chinese assistant contact officers from Whangpoo station with whom appointment initially made. Latter likewise said affair not within their jurisdiction and referred Consul General back to Foreign Affairs Section BPS. Latter then arranged appointment with SMCC Foreign Affairs Bureau 11 a. m.
Female representative SMCC first met group 6 ex-Navy employees approximately 30 minutes, then called Thomas. First inquired reason of visit and nature of request. Thomas replied meeting arranged pursuant request SMCC officials and Cabot evening 6th when pickets removed from Consulate General. SMCC representative then said [Page 1210] since matter not previously reported would like written outline entire matter. Thomas presented brief prepared statement in Chinese. SMCC representative said more detailed statement sequence events and position “capital versus labor” needed for study and decision higher authorities. Thomas pointed out that while glad to discuss matter with claimants and/or authorities with view to early solution Consul General representing sovereign power could not accept decision or arbitration by authorities since such would not conform applicable principles international law. Thomas reiterated Consul General not authorized represent Navy except as transmitting agency and not able act in capacity employer.
SMCC representative replied there are always two parties to every dispute and that in absence of Navy, Consul General should represent capital in matter. Thomas agreed submit new written résumé but pointed out this would involve further delay in effecting any payment whereas Consul General now almost ready effect payment accordance terms outlined AstALUSNA’s 270957Z4 and inquired whether Consul General should proceed such payment next week, mentioning rising commodity prices and increasing evidence bad temper claimants. SMCC representative said first submit written statement and await reaction higher authorities before making settlement. Thomas pointed out that in view increasing pressures claimants as demonstrated 6th further violence might be anticipated meantime unless authorities intervene. SMCC representative said in event such violence or incident report by phone to that office. Thomas replied three such phone reports made afternoon and evening 6th in addition police reports but that no assistance forthcoming until after staff detained approximately 10 hours. SMCC representative replied that holiday 6th and absence from office responsible for lack assistance that day.
Unless instructs to contrary will withhold settlement proposed 270957Z and await developments. However, visualize danger being ordered by authorities to effect settlement along lines demands workers with possibility further violence and prolonged siege Consul General. Even more dangerous possibility is that ex-Navy employees now organized only as each may join one of large labor unions, thereby increasing proportion pressure and possibility larger incidents accordingly. Latter possibility first suggested by SMCC officer night of 6th.
Sent Department 2662, repeated Nanking 1481.
Department pass to CNO & ComNavWesPac.