811.91293/8–749: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received August 7—3:40 a. m.]
3086. Gould informs Consulate General telegram just received from Starr states latter meeting Stuart, Cabot [in] Washington Wednesday, 10th, after which will instruct Gould but meantime latter not authorized negotiate settlement basis demands outlined ConGentel 3082, August 7, and suggesting alternative considered is acceptance resignation Gould and resumption publication Shanghai Evening Post under Miner.
Gould stresses utter impracticability Miner’s operation paper account his already heavy preoccupation with problems other Starr interests Far East, aside from other virtually insurmountable problems confronting foreign publications here, and points out that acceptance Gould’s resignation by Starr would have no effect upon Gould’s predicament until labor settlement reached.
View pattern wage settlements thus far established Shanghai and experience Consulate General with ex-Navy employees, Consulate General of opinion substantial settlement authorized by Starr least troublesome way out of impasse for all concerned.
Suggest Department pass this and reftel to Cabot prior Wednesday meeting with Ambassador and Starr.