Memorandum by the Assistant Secretary of State (Acheson)41

I believe that it might be of some help if the Secretary impressed upon Mr. Kung the broad considerations of policy mentioned in the Embassy’s telegram.42 I doubt very much whether anything would be accomplished by Mr. Hawkins’ or my talking with Dr. Kung. [Page 1067]Indeed, some embarrassment might be created. Mr. Kung is, according to my observation, a very shrewd gentleman. He would not hesitate to press Mr. Hawkins and me as to just what financial help the United States proposed to extend to China, and, since no plans have been developed or can be at this stage, it seems to me dangerous to work into this situation.

As I understand the Embassy’s telegram, they wish a general warning given to Dr. Kung against extreme nationalistic or illiberal commercial policies in China. I do not believe that anyone except the Secretary can do this.

Dean Acheson
  1. Addressed to the Director of the Office of Economic Affairs (Hawkins) and to the Secretary of State.
  2. No. 1303, July 28, 11 a.m., p. 1060.