102.22/7–3049: Telegram

The Consul at Shanghai (McConaughy) to the Secretary of State

2972. Besieging ex-employees gradually have increased pressure during day insistently demanding yes or no to ultimatum for six and one-half months’ pay.

After consultation with Embassy, indicated to them through Thomas this afternoon that I was prepared accept their tentative offer to lift siege and relinquish control of building if I would telegraph Navy Department text of petition drafted by them.

At this stage situation completely changed by abrupt entry of newcomer, civilian unknown to Consulate General officers, who immediately assumed dominant role. He gave workers decisive leadership for first time. He is obviously political figure with some authority, uses Marxist clichés. He may be from General Labor Union or Labor [Page 1255] Bureau. He left after several hours. About 7 underlings accompanied him.

This man assumed intransigent attitude, summarily rejected conciliatory gesture made by Consulate General, announced workers would not wait for case to be referred to Washington, that workers would collect from Consulate General locally. Thomas was working out withdrawal formula with workers when newcomer entered scene at 6 p. m. Thomas has been held in first floor room since then under continuous questioning. Has not been allowed to leave for meal. We have just sent food to him which workers kept from him saying he could go hungry as they had done since siege started/Indications are he will be kept up all night.

We appealed to police again at 9 p. m. to relieve Thomas of severe physical and psychological coercion. They said they would send a policeman to investigate but 3 hours later have not done so. Demeanor of police indicated they probably had orders not to intervene.

Chase succeeded in getting memorandum and letter re case before Chang Han-fu through Han Ming, Democratic Leaguer. Chase discussed case at length with Han Ming who indicated PLA, probably its political section, was backing the demonstration and directing handling of affair by Foreign Affairs Bureau.30 Some corroboration other sources.

Chang refused to see Chase but Chase with great difficulty saw subordinate who said he would relay Chase’s observations to higher authority.

Apart from Thomas, 9 male American staff members in building all barricaded in restricted areas 4th and 6th floors. I have been invited to present myself before demonstrators presumably in place of Thomas but do not intend to do so voluntarily. Such action in my view would play directly into their hands. Much as I wish to afford relief for Thomas, I believe this is a ruse to get control of principal officer depriving him of ability to fulfill his responsibilities.

I consider developments reported herein increase seriousness of case in all its implications.

Sent Department 2972, repeated Nanking 1660, OffEmb Canton 932. Department pass Peiping 232, CNO ComNavWesPac.

McConaughy
  1. For correction, see telegram No.3025, August 4, 4 p. m., p. 1266.