102.22/7–2949: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received July 29—2:58 a. m.]
2959. About 20 ex-Navy employees occupied lobby ConGen building 7:20 this morning, mingling with staff members reporting for duty. They pushed guards aside, seized gate keys and refused allow gate to be shut. Very abusive language used to American guard. Unfortunately iron gate guarding stairway to upper floors was necessarily open because elevators still out of order following typhoon. A few workers are sitting on first floor stairway to prevent stairway gate from being closed. So far none have gone higher than first floor. They insist their intentions are peaceable. So far they have not interfered with entry to or egress from building but some have brought food and lock-in later in day is possible. Workers have telephoned their associates asking reinforcements be sent.
Delegation of 8 insists on negotiating with Thomas, Administrative Attaché. I have flatly refused consider any discussion while they occupy any portion ConGen building.
This latest crisis directly attributable Foreign Affairs Bureau which officially requested us defer settlement we have been prepared last 2 weeks to make, settlement which is acceptable to more than half the claimants. Workers claim Foreign Affairs Bureau authorized their entry ConGen building. This so far not verified. At 7:45 requested police intervene. Result negative. When called second time at 9 a. m. they declined to intervene, saying workers did not intend violence, that it was merely labor dispute and we should negotiate with workers and [Page 1248] with General Labor Union, Thomas will proceed Foreign Affairs Bureau at 9:30 a. m. Workers invited send their delegation there also but they refused. Thomas will lay responsibility squarely at doorstep Foreign Affairs Bureau and insist it restrain workers.
We are ill prepared for siege at this time owing failure power, light, and water supply still unrestored following typhoon. Am gradually and unobtrusively sending staff members home, planning to have only skeleton staff here by nightfall. All necessary precautions taken.
Sent Department 2959, repeated Nanking 1654, Peiping 227.