Memorandum of Conversation, by Mr. Kermit Roosevelt, Jr., Assistant to the Assistant Secretary of State ( Acheson )29
|Participants:||Dr. Liu Chieh, Chinese Minister, and Counselor of the Chinese Embassy|
|Mr. A. Hiss—PA/H|
|Mr. K. Roosevelt—A–A|
Dr. Liu called on me at his request to receive an informal memorandum clarifying certain aspects of the draft note on Chinese reciprocal aid agreement, which was handed by Mr. Acheson to Dr. Soong on May 15, 1943. A copy of this informal memorandum is attached.
Dr. Liu said that the memorandum seemed clear and would be most helpful to his Government in considering the proposed agreement. Dr. Liu is planning to telegraph the draft agreement and the informal memorandum to Chungking immediately.
Dr. Liu observed that it was his understanding that the Chinese currency turned over to United States authorities would not be earmarked for specific purposes but could be used for the purchase of materials needed by the armed forces or for wages or administrative expenses.
In the course of the conversation it was emphasized that the amounts of Chinese currency to be received by United States authorities, and the amounts of American dollars to be turned over to Chinese authorities, would be the subject of joint consideration. Dr. Liu inquired whether this could mean that no American dollars need be received by China. It was explained to him that we definitely contemplated that American dollars would be provided in connection with certain [Page 542] categories of expenditures. Mr. Hiss also emphasized the fact that the proposed agreement would not affect the purchases of strategic materials to be exported from China by the Board of Economic Warfare or by the Reconstruction Finance Corporation agencies.
- Substance of this memorandum reported to the Chargé in China in Department’s telegram No. 659, May 24, 9 p.m.↩