811.42793/1057: Telegram
The Chargé in China (Vincent) to the Secretary of State
[Received 11:35 a.m.]
447. Reference Department’s instruction 222, February 12,20 in regard to China Foundation. I have been informed by Cabinet Minister that at a meeting of the Executive Yuan on the 23rd the question of China Foundation was discussed. Memorandum prepared by Ministries of Foreign Affairs, Finance and Education recommended that payments in arrears up to time of the coming into effect of new treaty should be made; that there should be no subsequent payments; but that Foundation should continue in existence with what funds it had and might receive as donations. Ensuing discussion revealed that Minister of Education wished to become ex officio member of the Board of Trustees or to have the right to appoint a member. It also revealed that, although Ministry of Education was party to the memorandum, followers of Minister of Education at the meeting (Minister of Social Affairs and Secretary General of Executive Yuan[)] favored dissolution of Foundation and transfer of its functions to Ministry of Education. I am informed the Generalissimo, Kung,21 and Soong favor continued existence of Foundation but nationalistic elements represented by “CC22 clique” members feel that Foundation will be inconsonant with China’s new position of full equality after relinquishment of extraterritoriality. Kung took little part in discussion and adjourned meeting without decision. I am informed, however, that affirmative decision on the memorandum will be taken but that question of meeting Education Minister’s desire to be represented on Board may cause difficulties.
[Page 708]Dr. Sze’s conversation with officers of the Department (Department’s reference instruction) was telegraphed to Chungking substantially as reported in Department’s memorandum.