The Chinese Supply Commission to the Department of State

Gentlemen: The Government of China appreciates the expression of views of the United States Government with respect to the functions of purchasing missions of the governments of other countries, contained in the State Departments aide-mémoire of April 2.

The Chinese Supply Commission in Washington is not a state trading agency in the ordinary sense. Its procurement activities are limited to transactions on behalf of the Chinese Government undertaken on specific direct instructions from the Chinese Government to meet urgent essential needs for relief and rehabilitation. Where-ever practicable, the Commission also prefers normal trade channels in its work and all purchasing methods are designed to be consistent with usual commercial considerations.

It is noted that the Government of the United States recognizes the need for some government participation in international flow of supplies during the period of transition from war to peace. Despite the enormous damage done to the Chinese economy during prolonged resistance to the Japanese occupation, the Government of [Page 1398] China is struggling towards a stage of economic stability that will afford a basis for normal peacetime domestic and international trade policies and practices. The Government of China is most appreciative of the assistance rendered towards this end by the Government of the United States.

Very truly yours,

Shou-chin Wang