893.61/1–1646: Telegram

The Secretary of State to the Embassy in China

195. For General Marshall from Colonel Davis.12 Chinese request for agricultural mission (refer Embtel 119, dated 16 January, and Dawson memo13 mentioned therein for details of mission activities) now under consideration by State Department. In meantime, believe your guidance in consideration of programs of technical assistance would be most helpful.

Present State Dept plans call for an expanded program of cultural-technical cooperation throughout the world, beginning fiscal year 1947. Implementation of these plans is subject to favorable action by Congress on enabling legislation and appropriations bill. Former is so-called Bloom Bill, entitled “A Bill for the Exchange of Persons, Knowledge and Skills.”14 This bill in effect extends to the entire world provisions of the legislation which implemented good neighbor policy toward Latin America. Passage of Bloom Bill probable in view of fact it was voted out of House Committee on Foreign Affairs by unanimous vote.

Various civil agencies of the Government have prepared list of projects for fiscal year 1947 in anticipation of passage of Bloom Bill in time for these projects to be included in fiscal year 1947 budget. Projects will be submitted to Bureau of Budget by State Dept, which will coordinate activities of other Government departments through Interdepartmental Committee for Scientific and Cultural Cooperation. All monies for these projects are incorporated in State Dept budget. Accordingly, entire program is coordinated and controlled by State Dept, both financially and on policy basis. Each project will be implemented only after consultation with diplomatic mission in country concerned. Detailed list15 of projects being forwarded by air pouch. Some of these projects are definitely earmarked for China; others are merely designated for Far East, including China. Total budget estimates for Far East projects, as approved by Interdepartmental Committee, amount to approximately 4½ million. Those specifically for China within that amount total $1,291,000. Of balance for Far East, it is estimated approximately 50% is for China. Breakdown of projects specifically designated for China is as follows:

[Page 1272]

1. Department of Agriculture

a) Experiment stations—technical and scientific projects $385,000
b) Exchange of persons—fellowship 39,000
c) Exchange of information—technical library and training program 90,914

2. Dept of Commerce—Civil Aeronautics Administration

a) Chinese aviation training program $146,680

3. Dept of Interior

a) Bureau of Mines—cooperation in the development of mining and metallurgical methods $76,890
b) Fish and Wild Life Service—fisxhing development 35,980

4. National Archives

a) Interchange of professional personnel (archivists) $3,300

5. Dept of State—Division of International Exchange of Persons

a) Grants and services to Chinese graduate students and trainees $237,000
b) Exchange of specialists and professors $276,000

Activities of agricultural mission during present fiscal year are possible by reason of availability of certain unvouchered funds remaining at disposal of Division of Cultural Cooperation of State Department. However, work of mission during balance of this fiscal year is being considered only as an introductory or exploratory phase of the Dept of Agriculture 1947 budget project. Dept of Agriculture is prepared to initiate mission during present fiscal year on basis of reasonable assurance of implementation of 1947 project and designation now of $56,000 from the unvouchered funds, which is amount required to carry the mission for 6 months and finance its return to US. State Dept prepared to proceed during this fiscal year and provide this sum because of estimated probability of passage of Bloom Bill.

The only other new programs for technical assistance being contemplated for initiation with 1946 fiscal funds are technical missions of Interior Department (a) Bureau of Mines and (b) Bureau of Fisheries. Activities of these missions during present fiscal year will be financed from same source as agricultural mission, and their work would also be considered introductory and preparatory to fiscal 1947 [Page 1273] projects of these Bureaus, description of which is contained in detailed project list being forwarded by air. Initiation of these missions is possible during present fiscal year if reasonable assurance can be given Department of Interior that 1947 funds will be allotted out of Interdepartmental Committee program for the mines and fisheries projects.

I have taken position that the fiscal 1947 budget projects of technical cooperation, which have implications of economic assistance, including any activities thereof financed with fiscal 1946 funds, should be discussed with Chinese in the aggregate as a single program and only at such time as you recommend. This would include such projects as agriculture and mining. However, projects such as the State Department program for exchange of students and professors which are of cultural nature with a long established background do not seem to me appropriate as a bargaining element in the accomplishment of your mission. President’s “black out” letter (refer Deptel 2022 of 19 December 194516) in suspending all conversations with Chinese officials except in accordance with your recommendations refers to “extension of American economic or financial aid to China.” Accordingly, I have interposed no objection to continuation of discussions with Chinese on programs designed for purely cultural development. Your instructions with respect to my position on these points will be appreciated.

There is pressure here to discuss projects with Chinese individually, particularly those which can be initiated with fiscal 1946 funds. I understand that technical cooperation in the agricultural field is considered important by Chinese Government and that similar situation exists with respect to the mines and fisheries projects. Although it may be advantageous to initiate technical missions during this fiscal year and thus have the benefit of an additional 2 or 3 months to get programs under way, their activities during this period are being considered by Departments of Agriculture and Interior as preparatory to their 1947 budget projects. Timing of the decision in this matter is important to the State Dept because if delayed, it might not be possible to divert unvouchered funds to other uses during present fiscal year. However, I consider that these factors are overbalanced by the bargaining power to be gained by you in having all the 1947 projects of technical cooperation negotiated with the Chinese as a single over-all program at the time you consider most favorable.

An alternative would be to discuss separately with Chinese now the agriculture project and the Bureau of Mines and Fisheries projects, if they can be initiated during present fiscal year, and leave the balance of the 1947 projects to be discussed as a unit at a later date. [Page 1274] However, the agriculture, mines and fisheries projects constitute greater portion of bargaining power to be gained from the program of technical cooperation and should be accordingly discussed only at the most favorable time. Moreover, the activities of these missions during present fiscal year is no more than an initial phase of the 1947 projects and cannot be separated from such projects in any negotiations with Chinese.

Would appreciate your views and recommendations as to course and direction which further negotiations with Chinese should take in the field of technical-cultural cooperation. [Davis.]

  1. James C. Davis, General Marshall’s representative in Washington.
  2. Presumably a reference to the Dawson memoranda mentioned in telegram No. 191, January 30, 1 p.m., supra.
  3. H. R. 4982, 79th Cong., 1st sess.; introduced by Representative Sol Bloom (New York) on December 13, 1945; Congressional Record, vol. 92, pt. 8, p. 9591.
  4. Not found in Department files.
  5. Foreign Relations, 1945, vol. vii, p. 1376.