893.01/7–2349: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received July 22—11:16 p. m.]
2901. Sin Min Wan Pao July 20 reports that “leftover personnel” of various sections of defunct Shanghai Municipal Government have completed month’s re-education training. Article reports that as most these persons superfluous, People’s Government for sake of economy and to enable each man to “develop his ability” has “allowed” portion of them to resign, giving them 1½ month’s salaries each as separation allowance. The rest have been retained for service. According to article, those who resigned have either returned to home towns to engage in productive activities, taken new jobs or requested People’s City Government to recommend them to Revolutionary College to continue studies.
Of possible interest in connection with above is unverified rumor that Peiping Government displeased with Mayor Chen Yi over largescale [Page 452] disorganization in Shanghai Government offices. Allegedly Peiping Government annoyed that more trained personnel not retained in their positions by Communists after Shanghai take-over; apparently lack experienced personnel may have contributed to deteriorating situation in city.
Sent Department; repeated Nanking 1631, OffEmb Canton 915. Department pass Peiping 220.