124.933/8–2349: Telegram
The Counselor of Embassy in China (Jones) to the Secretary of State
[Received August 23—6:43 a. m.]
1873. ReEmbtel 1838, August 19, 5 p. m. Employees’ committee Saturday formally stated “hope”, not “demand”, that Embassy would settle with dismissed employees now and in future on following terms: (1) 1 year’s pay; (2) additional allowance US $300 to each employee earning less than $1000 annually; (3) special additional consideration to be given employees with more than 1 year’s service; (4) foregoing to be in addition to lump sum payment accrued leave and retirement deductions; (5) all benefits to be paid immediately on separation and on US draft; (6) on resumption normal operations, severed employees to be reemployed. Year’s pay explained on basis US dollar now worth in commodities only 30 percent its value before take-over.
Embassy’s position as outlined reftel given to committee for digestion over week end and all discussion of committee terms deferred until adjourned meeting August 22. Meantime Shanghai MCC rules governing settlement labor disputes in newly reopened enterprises published providing, inter alia, that in case of dismissal terms of employment contract must be adhered to and where no contract exists employee is entitled to 1 month’s notice and 1 to 3 months’ pay, depending on length of service. August 22 committee requested deferment meeting until 23rd.
Sent Department; repeated OffEmb Canton 786, Shanghai 1030.