893.50/12–1445: Telegram
The Chargé in China (Robertson) to the Secretary of State
[Received December 16—9:35 a.m.]
2160. ReDeptel 1951, December 6.54 Dr. Soong’s address at initial meeting Supreme Economic Council November 26 was generally similar to that of Gimo55 in its optimism and broad scope. It was characterized however by somewhat greater emphasis on policies required to attain objectives outlined by the Gimo and expressed need of encouragement of (1) unsubsidized private enterprise [and] (2) close cooperation with Allied Nations, Soong stated that Government guidance and assistance to private enterprise would not take the form of subsidies but should consist in more basic activities in field of science and technique, finance, communication and transport and motive power. Importance of finding a successful solution to problems [Page 1363] now arising from currency and commodity price situation was especially recognized.
Dr. Soong stated:
“The attitude of the Government towards Allied Nations should be one of close cooperation based on frankness, reciprocity and equality, and such cooperation may [be?] technical, commercial or financial in character. Technically this Council should provide leadership in keeping in touch with countries more advanced in scientific and engineering accomplishments with a view to establishment of mutually beneficial contacts so that the tempo of progress of economic development may be increased. Commercially we shall strive to bring about the conclusion of arrangements in the field of foreign commerce and exchange. Financially we should cooperate with all friendly nations to find avenues for surplus capital and to establish conditions favorable to economic mobility on one hand and to secure its effective utilization for increasing our productive capacity on the other.”
With respect to functions of Supreme Economic Council vis-à-vis economic activities of various governmental departments, Soong stated these to consist of “adjustment and coordination”. By adjustment was meant (1) that employment of national income should be properly apportioned between Government on one hand and business on the [other?]; and (2) that field of economic enterprise should also be appropriately delimited between them. Coordination meant that various departments should be made to eliminate duplication of economic operations and to reconcile conflicting tendencies of economic policy. In dealing with the Government itself then Soong stated that the Supreme Economic Council was to carry through a program of general planning and division between channels of public and private enterprise.
Complete text of Soong’s speech forwarded air mail.56
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