Foreign Relations of the United States, 1949, The Far East: China, Volume IX

893.00B/9–1949: Telegram

The Consul General at Tientsin (Smyth) to the Secretary of State

Tientsin, September 19, 1949—9 a. m.
[Received September 20—11:17 p. m.]

753. White, representative for Standard-Vacuum and Butland, for Texaco, here, report Communist authorities say they cannot get exit permits until satisfactory labor settlement made connection turning over business to committee Chinese employees (Deptel 218⁶⁶). Butland says Foreign Affairs Bureau also told him turnover must be approved by Ministry Commerce Industry. This is example Communist withholding exit permits as club over foreigners (ourtel 726, September 12⁶⁷).

Chinese employee demands include (1) setting aside stocks equivalent 3 years’ operating expenses to insure wages, (2) 1-year bonus. Matter referred Labor Bureau but decision not yet given. Pending outcome employees refuse allow any sales except enough cover wages.

White says newly published proposals for local labor regulations seem have no bearing on matter. As with many Communist regulations, they look good on paper but used or not used according Communist desires. White reports futility and frustration in dealings with Labor Bureau and a feeling of being completely at mercy of Communists. White and Butland request no publicity pending outcome.

Smyth

66. August 5, not printed.
67. Vol. viii, “Problems of United States Consulates in areas occupied by the Chinese Communists”, chapter II.