893.918/7–549: Telegram

The Consul General at Shanghai (Cabot) to the Secretary of State

2609. [To Nanking:] ReContel 1432 to Nanking, repeated Department 2597. Shanghai Evening Post workers, after detaining Gould in downtown office July 1, to discuss wage settlement, finally permitted him and SEP Treasurer, Miner, return home at 11 p. m. on condition negotiations would be continued with workers’ committee next morning. Following, day before Gould dressed, 7 workers knocked loudly on his private apartment door and started force way in. Mr. and Mrs. Gould and Freeman, American employee of Starr’s American Underwriters, in apartment at time and latter assisted Goulds to forcibly prevent workers from entering. No real violence and no one injured, but Goulds did use force to keep workers out.

Workers promptly obtained medical certificates re their “injuries” and filed a charge of assault and battery at police station. Police summoned Gould to station and he appeared with his American lawyer Bryan at 2 p. m. Saturday. Police informed him they took very serious view of case and confronted him with 7 affidavits of “victims” of his attack and eye-witnesses. Police indicated that they considered strongest affidavit that of Russian guard, Soviet citizen, hired by SEP businessman Douglas, about 1 week before closure. Police triumphantly pointed out facts stated must be true because even foreigner’s version agreed with Chinese. Gould replied that workers were forcing entry into private apartment and he resisted in self-defense. Police insisted he would have to make apology. Gould drafted one which indicated [Page 1196] workers had used force and police rejected it. Gould then told police to draft one themselves but they refused on ground that it must be in his own words. Compromise draft by Bryan acceptable police limited to general apology without detailed statement circumstances. Police added line “I agree there will be no repetition of incident” which Gould considered very compromising but he had no alternative but to sign. Bryan advised him privately to sign to avoid an almost certain jail sentence, pointing out that apology was meaningless anyway since obtained under duress. Apology appeared following day inconspicuously in North China Daily News among ads on back page, more prominently in Chinese papers. Police also ordered Gould apologize in person to all employees SEP at paper’s office on July 4.

Saturday morning workers’ delegation returned to Miner’s office as agreed to continue discussion wages. Remained adamant in stand that only June wage adjustment subject for discussion and paper must continue them on payroll indefinitely after that. They lowered their demands, however, and expressed willingness accept same wage scale as employees of North China Daily News which was about one-third higher than Miner had offered them but also [less?] than they had originally demanded. Miner agreed to their request to telegraph this latest demand to Starr in England. Negotiations were then suspended pending receipt Starr’s reply. Monday morning police at last minute complied with Gould’s request for police protection at meeting he was scheduled to apologize to workers. Gould was under influence sedative administered by his doctor. One officer of SMCC accompanied him to meeting which was held inside paper’s offices. Workers orderly and reasonable as Gould read his apology, announced his willingness to negotiate and explained that the final decision would have to rest with Starr. Following meeting Gould, Miner and workers conducted further wage negotiations and Gould offered turn over paper’s ready cash as part payment June payroll. Accepted conditionally by workers. Gould permitted leave the premises in afternoon and take with him effects from his editorial office.

Sent Nanking 1441; repeated Department.

Cabot