893.918/8–2349: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received August 23—9:26 a. m.]
3400. ReConGentels 3082, August 7, 3086, August 7. Fresh from 3-hour session workers, Evening Post labor mediator, Gould reports unsatisfactory conversations. Felt he had been bullied and all decisions made favorable to labor without regard management’s side or provisions newly promulgated regulations re labor management relations (refConGentel 3383 and 3384, August 2252). Held to following points:
- (1)
- Gould is personally responsible since he Starr’s authorized agent.
- (2)
- Interpret Gould’s recommendation in telegram to Starr re 9 months’ pay for workers and 7 for staff as promise to workers to pay that amount. Mediator stated since union says he promised, their word accepted and Gould has not lived up to promise. Now state he must pay workers 8 months and staff 6.
- (3)
- Unless settlement made before August 31, must continue pay workers.
- (4)
- Workers are to be considered on payroll until final settlement.
Sum total required by Gould to liquidate approximately $80,000. Part of this (estimated at roughly 50 percent) could probably be raised by sale of plant if workers would vacate promptly but now in belligerent mood. Little likelihood their vacating until demands met. Gould seemed at end of his rope and felt remittance from Starr full amount demanded thus enabling him liquidate and sell was only solution. ConGen believes it important free Gould from continuous threat lock-in, other bullying tactics. When Gould remarked he expected face another lock-in, mediator harshly told him not mention possibility; however, given clearly understand authorities would not be interested or give protection in such event. Obvious authorities do not intend respect [Page 1280] own regulations unless it suits them. This based on mediator’s statement new regulations do not apply this case.
Department pass to Starr at its discretion.
- Neither printed.↩