893.918/8–1849: Telegram

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

3318. Remytel 2943, July 28. August 18 workers again (Gould case still unsettled) invaded office and held Miner, who was later joined by Gould, for several hours during which time they ransacked desks, baking cigarettes, other small items. Before going to join lock-in, Gould called Labor Bureau to ask assistance in dispersing workers. Was told a police matter, not labor. Assistance refused. After Gould joined Miner, ConGen reported matter to police who replied would refer to military commander. Shortly thereafter, whether on basis our call, his call or other cause, union officials appeared and dispersed crowd after Gould signed statement saying he “hoped” to have funds for the next day. This was compromise on workers’ demands for firm promise. August 18 Gould ‘borrowed sufficient funds National City [Bank of New York] on basis stocks newsprint and possible sale of press to meet mid-month pay roll so is clear until September 1. Gould now attempting reach official in Labor Bureau who will lay down terms [Page 1275] of final termination settlement and conclude sale of property which will realize funds to make 3–month pay off, thus making total of 4 since one already paid. Strong possibility such settlement satisfy workers but if not Starr may be asked put up some additional to ransom Gould.

McConaughy