893.24/1367
Memorandum by the Acting Chief of the Division of Exports and Defense Aid ( Bunn ) to the Chief of the Division of Far Eastern Affairs ( Hamilton )
Attached are a memorandum15 and a draft agreement16 prepared in TA, and which I have initialled.
[Page 570]It will be noticed that the draft follows the British text in all essential respects. The reasons are stated in TA’s memorandum.
In order to meet Mr. Currie’s point, however, I suggest the following brief statement which might, if desired by the Chinese, even be made the subject of an exchange of notes at the time of the signature of the agreement:
The proposed agreement is in the same terms as similar agreements between the United States of America and others of the United Nations. Article VII makes reference to reduction of tariffs. It is recognized that the tariffs in effect in China are already, in general, low. General reductions in Chinese tariffs are therefore not expected, and some increases may be appropriate. All these matters are to be the subject of further discussion and agreement, as Article VII indicates, to the end that production and employment in both countries may be expanded by increased trade in both directions between them, and between each of them and other nations.
Sufficient copies are attached for Mr. Hornbeck and Mr. Currie.