894.5034/24: Telegram
The Ambassador in Japan (Grew) to the Secretary of State
[Received August 8—9:20 a.m.]
1194. 1. American firms here are facing a very serious situation. Their Japanese employees, sensing the possibility of these concerns having to discontinue business as a result of prevailing trading conditions, are demanding retirement allowances of from 1 to 2 months’ pay for every year of service and in some instances an advance notice of 3 before being discharged. One American owned Japanese incorporated firm has received a demand from its employees for a 30% increase in salaries and the transfer to them of 55% of the only [common?] shares.
2. It is believed that the above demands are being made with the full approval of the Japanese authorities as some Americans have been [Page 422] informed that no permit will be granted for their departure from this country until full satisfaction has been given their Japanese employees.