125.857/8–149: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received August 1—2:08 a. m.]
2980. 11 a. m. Due continued occupation Glenline Building by ex-Naval employees, problem of whether we should endeavor open ConGen for normal business will arise Tuesday, August 2. ConGen normally would have been closed Saturday, Sunday, Monday, latter due local holiday. Since easing tension due agreement consult Shanghai Labor Office (mytel 2979, July 31, 10 p. m.), occupation building reduced to approximately 20 ex-employees in lobby, about 60 watching [Page 1259] building from outside. Workers anxious have ConGen resume normal functions and would like to restore our control of front entrance for everyone except themselves. Workers obviously anxious to maintain fiction peaceful picketing and have removed objectionable signs from ConGen entrance.
In my best judgement, ConGen should remain officially closed to general public as long as even a small portion of mob in unauthorized occupation of any part of ConGen with consent of authorities. Resumption of appearance of normality would play into hands of Communist regime naturally anxious to minimize whole affair. Security precautions could not be observed properly with office functioning. Principal and administrative officers and AstALUSNA could not carry on without risk of being seized at any moment. Although we have had water since late afternoon July 30, we still do not have electric lights or power nor safe access to foodstocks. Sudden reimposition of airtight siege which could easily be effected would place us in serious predicament if entire staff caught there.
Continued closure would give impressive evidence of indignation and extreme gravity with which our Government regards this indefensible transgression. ConGen will, of course, maintain essential reporting through staff American officers and will render necessary services to American nationals on emergency basis. I propose notifying Chinese staff to stay home pending lifting by local authorities of illegal occupation of building except for those required for special duty. I propose to announce publicly merely that ConGen is closed until further notice and to give the correct reason in answer to inquiries. Please advise urgently.
State pass to CNO.
Sent Department; repeated Nanking 1666.