393.1115/10–549: Telegram
The Consul at Shanghai (McConaughy) to the Secretary of State
[Received October 5—8:18 a. m.]
4201. Re Deptel 1981, September 26. No official American personnel Shanghai denied exit permits. Tentative tally by Consulate General [Page 1350] shows 18 Americans remaining Shanghai more or less against their will. Variety individual problems and subterfuges authorities make tabulation into two groups by Department impractical. Names firms and summary reasons detention of 18 follows:
C. V. Schelke, Andersen, Meyer and Company, also President Shanghai American Chamber Commerce, applied for permit as test case. Name published Chieh Fang Jih Pao as recipient permit. When attempted obtain permit informed by police that company labor union had requested his detention plus one British, one Dane, members firm. Schelke told he “guarantor”, that 200 employees closed Andersen, Meyer’s plant would continue draw pay indefinitely. Schelke protested firm’s Shanghai assets enough meet payroll 20 years but police insisted he remain as “hostage”. Schelke believes labor union has relented on retention other two but thinks own case hopeless till authorities can control labor. Schelke actually not prepared leave Shanghai this time.
E. E. Petersen, J. J. Thompson, Chase Bank. Petersen’s application permit never acknowledged despite at least 10 requests. Thompson’s application accepted, referred SMCC and name published as recipient permit but then informed that “outstanding bank liabilities” and settlement labor troubles made his retention necessary. Bank attempting cut staff in view slack business. Labor union had written police requesting retention.
J. T. S. Reed, National City Bank. Reed refused apply due labor union troubles to ensure departure Starrett, Kathe [sic] of his staff. One British volunteered remain Starrett’s place. To clear Starrett with American Club labor union at last minute, Reed took over Starrett’s duties, obligations as Club Treasurer. Police also questioned Starrett one and one-half hours re “associations with Kmt” immediately prior his departure, apparently mistaking him for Reed who served on Kmt Mayor’s advisory committee.
D. D. King, Northwest Airlines. King most flagrant example abuse power by labor and authorities. King had received exit permit, passed customs and was to board Gordon when delegation company labor union (only 25 union members) approached police official at gangway requested King be detained. Official without further reference headquarters barred King’s boarding until union agreed. Union and King then had meeting, successfully concluded, but King returned to Gordon too late to board. Labor union now deciding whether allow King depart Marshal Joffre. King’s American assistant, Farrel, departed Flying Independent without incident. Authorities now interested in NWA–Peiping–Tokyo shuttle service and may have wanted King’s presence this account.
[Page 1351]A. L. Branning, BOTRA. Understand Branning refused exit permit due noncompletion BOTRA contract terminating January, February 1950 despite direct appeal Alien Affairs Bureau. Branning skilled engineer responsible for raising part BOTRA fleet 25 ships sunk prior Shanghai takeover. Unable confirm as Branning in hospital.
P. H. Boardwell, Shanghai wharf warehouse, Robert Dollar affiliate. Labor union requested authorities refuse permit on [in] order obtain allegedly promised pension plan. Boardwell had assigned full powers to American Vice President but union thought only Boardwell had authority grant pensions.
Paul Hopkins, Shanghai Power Company. Applied Director Public Utilities for permission apply exit permit and was asked by SMCC withdraw request. Hopkins asked Director Public Utilities reconsider stand but agreed remain in effort assure departure ten other foreign staff. SMCC stressed need Shanghai for competent management power company based retention on this. No evidence labor disputes. Hopkins now given permission leave if substitute arrives.
F. F. Flanley, Shanghai Telephone Company. Followed Hopkins lead and did not apply after Hopkins turned down. Was told by Director Public Utilities he was essential continued efficient operation city telephones. Now attempting obtain permission bring in replacement.
W. W. McMillan, B. B. Hollimon, S. S. Marshall, Caltex. These three agreed withdraw applications after exit permits approved to assure departure rest foreign staff. Authorities and labor union refused accept Chinese Management Committee which made retention some American staff necessary. Labor union backed by authorities adamant that some Americans should remain ostensibly deal labor problems. Authorities and labor feel presence some Americans insures continued inflow supplies and continued operation companies.
J. V. Pickering, A. A. Shaw, J. J. Murphy, John Soong, Stanvac. Case similar Caltex. Stanvac attempted place competent Chinese at head firm’s Chinese management committee, but choice warned by phone not accept. Labor union requested retention 7 Americans, but agreed to 4. Union claimed retention necessary until all future labor problems settled, although no dispute pending. Union backed at every turn by authorities, though Pickering sees evidence authorities unable fully control company union.
W. W. Orchard, American Express Company. Orchard told by police, after exit permit approved, People’s Court requested withholding exit permit in writing due suit for settlement pre-war deposit account filed by alleged depositor. No written complaint sent Orchard [Page 1352] nor date for hearing set. American Express closed books as of September 30 but permission dismiss staff close business not yet granted.
Consulate General suggests following summary reason retention:
Hopkins, Flanley: Authorities unwilling risk utilities breakdown inefficient operation through lack competent management. Possibly sincere.
Caltex, Stanvac: Refusal authorities accept Chinese management Committees due unwillingness risk shutoff essential POL74 supplies which they feared would follow departure all Americans and labor pressure.
Chase, National City: Some labor pressure but Communists adamantly arbitrarily kept one or two men each bank. Orchard may fit this category as lawsuit looks phony.
King: Labor troubles ostensible pretext, but authorities apparently desired keep airline talks going.
Schelke, Boardwell: Labor troubles.
Branning: Valuable technician, BOTRA contract unfulfilled.
No missionary, educational personnel refused.
Consulate General cautious [cautions] above list may not be complete as exceedingly difficult gain information on Chinese-Americans and on several borderline cases.
- Petroleum, oil, lubricants.↩