893.50/9–1145: Telegram

The Ambassador in China (Hurley) to the Secretary of State

1567. Jacobson37 of the American Production Mission informs me he has communicated with Locke38 urging that top level U. S. Government and businessmen give immediate consideration to the problems of getting Japanese technicians quickly out of industrial and other establishments in Formosa and Manchuria and of facilitating Chinese economic restoration and development. He suggested [to?] Locke that consideration be given to specific plans for handling these problems and to discussing them with Soong in the United States.

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I should like to point out that Jacobson made this recommendation upon his own initiative after attending a meeting called at the suggestion of General Olmsted39 to consider the possibility of a Civilian Economic Mission to China to parallel the proposed Military Mission to China. This meeting which was purely exploratory in character was attended by representatives of the Embassy, G–5, FEA and the American Production Mission. After short discussion it soon developed that the question of a Civilian Economic Mission involved basic military, political and economic policies and that no action should be taken without mature deliberation on the part of all concerned. (It is estimated that there are some 18,000 Japanese technicians employed in Formosa alone. There are also large numbers employed in the railways and other industries in Manchuria.)

It was the consensus of opinion of those present that a later meeting should be held at which would be considered briefs prepared by the Embassy, the American Production Mission and the Military, setting forth their respective views in regard to the situation so that if a recommendation was made to Washington it would represent the considered opinion of the various groups interested in the problem. Jacobson fully concurred in the procedure recommended. In our opinion it would be most unfortunate if this question should be raised with Soong until there has been further clarification of the questions involved. I suggest that Locke be informed of these circumstances.

  1. James A. Jacobson.
  2. Edwin A. Locke, Personal Representative of President Truman in charge of the American Production Mission in China.
  3. Brig. Gen. George Olmsted, Assistant Chief of Staff, G–5, U.S. Army Headquarters in China.