493.11/2063: Telegram

The Secretary of State to the Ambassador in China (Johnson)

262. Your 698, September 21, 4 p.m. The meaning of your second sentence is not clear. However, Department believes that the Foundation possesses the right to approve or disapprove proposals for investment [Page 677] of funds; that the responsibility for deciding in what manner endowment funds shall be invested lies with the trustees; and that this Government should not intrude in the matter. We are, of course, concerned that the funds be handled on sound principles of investment; but we cannot undertake to assume or to share the responsibility of the trustees and we, therefore, offer no opinion regarding the proposed investment under reference.

You may inform Bennett of the above.