893.20 Missions/5–146

The Department of State to the Embassy in China

No. 546

There is enclosed a copy of the draft, dated April 29, 1946, of the agreement between the United States of America and the Government of the Republic of China for the United States Military Advisory Group to China. This draft agreement has been prepared by this Department in collaboration with the War and Navy Departments.

General Marshall is authorized to present this draft agreement to the Chinese Government as the basis for negotiations between the two Governments. Negotiations in connection with the draft agreement should, of course, be on an ad referendum basis.

Legislation providing for the detail of United States military and naval missions to foreign governments is now before the Congress. As this legislation was passed by the House of Representatives on April 18 and was favorably reported by the Senate Military Affairs Committee on April 17, it is probable that the legislation will become law in the very near future. General Marshall will be informed as soon as the legislation has been passed. The draft agreement has been prepared on the assumption that the legislation would be enacted by the time the draft agreement was ready for signature. If there should be an unforeseen delay in the passage of the legislation, additional instructions will be sent so that the agreement may be signed prior to the passage of the legislation.

Legislative authority will be necessary for the implementation of Articles 24, 25 and 26 of the draft agreement. The Department is taking steps so that the necessary enabling legislation may be introduced in the Congress in the near future. The draft agreement has been prepared in the light of the probability that the legislation will not have become law by the time of the signature of the agreement. It is anticipated that the legislation will be passed by the Congress but the Department is, of course, not in position to give assurances to that effect. The legislative situation with regard to Articles 24, 25 and 26 should be explained to the Chinese Government in the course of the negotiations.

Article 20 of the draft agreement has been informally and tentatively approved by the Treasury Department but formal approval has not yet been obtained. It is not believed that the Chinese Government need be informed of this fact. Should the Treasury Department desire any change in the phraseology of this Article, General Marshall will be informed immediately.

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[Enclosure]

Draft Agreement Dated April 29, 1946, Regarding United States Military Advisory Group to China

In conformity with the request of the Government of the Republic of China to the Government of the United States of America, the President of the United States of America has authorized, in agreement with the President of the Republic of China, the appointment of a United States Military Advisory Group to the Republic of China (hereinafter referred to as the Group) under the conditions specified below:

Title I

Purpose and Duration

Article 1. The purpose of the Group shall be to assist and advise the Chinese Government in the development of modern armed forces for the fulfillment of those obligations which may devolve upon China under her international agreements including commitments assumed under the United Nations, for the establishment of adequate control of liberated areas in China, including Manchuria, and Formosa, and for the maintenance of internal peace and security.

Article 2. The Group shall continue for a period of five years from the date of the signing of this Agreement by the accredited representatives of the Government of the United States of America and the Government of the Republic of China unless previously terminated or extended as hereinafter provided.

Article 3. If the Government of the Republic of China should desire that the services of the Group be extended beyond the stipulated period, it shall make a written proposal to that effect at least six months before the expiration of this Agreement.

Article 4. This Agreement may be terminated before the expiration of the period of five years prescribed in Article 2, or before the expiration of an extension authorized in Article 3, in the following manner:

(a)
By either of the Governments, subject to three months written notice to the other Government;
(b)
By the recall of the entire personnel of the Group by the Government of the United States of America, without necessity of compliance with the provision (a) of this article.

Article 5. This Agreement is subject to cancellation upon the initiative of either the Government of the United States of America or the Government of the Republic of China at any time during a period when the other Government is involved in domestic or foreign hostilities.

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Title II

Composition. Functions and Personnel

Article 6. The Group shall consist of such number of United States military personnel, initially not to exceed one thousand, as may be agreed upon by the Governments of the United States of America and the Republic of China.

Article 7. The Group shall include an Army Component and a Navy Component, and shall be headed by a Chairman who shall be a general officer of the United States Army or a flag officer of the United States Navy.

Article 8. The functions of the Group shall be to provide such advice and assistance to China on ground, air, naval and logistic matters as is necessary to accomplish the purposes set forth in Article 1 of this Agreement. United States personnel shall not accompany Chinese troops or Chinese ships on other than training maneuvers or cruises.

Title III

Responsibility and Rank

Article 9. Each member of the Group shall serve with the Group with the rank, grade or rating he holds in the United States Army, Navy or Marine Corps and shall wear the uniform of his rank, grade or rating in the United States service.

Article 10. Members of the Group shall be subject to applicable United States Army and Navy regulations.

Article 11. No member of the Group shall assume duties as a result of which he will be responsible to the Government of the Republic of China.

Title IV

Compensations and Prerequisites

Article 12. All members of the Group shall be on active duty and shall be paid regularly authorized pay and allowances by the Government of the United States of America, in addition to a special allowance to compensate them for increased cost of living. This special allowance shall be based upon a scale agreed upon by the Governments of the United States of America and the Republic of China which shall be revised periodically in the light of price and exchange rate fluctuations. Salaries and allowances shall normally be paid in United States dollars. In the event that both Governments agree at any time that it is desirable that payments to members of the Group be made in whole or in part in Chinese currency rather than in United States dollars, the Chinese Government shall [Page 833] make such currency available at an equitable rate of exchange to be agreed upon by the two Governments. No member of the Group shall be subject to the payment of any tax to the Government of the Republic of China or any of its political or administrative subdivisions upon compensation received as a member of the Group. If at present or while this Agreement is in effect there are any taxes which might apply to such compensation, such taxes shall be borne by the Chinese Government. The Government of the Republic of China shall reimburse the Government of the United States of America for expenses incurred in paying the special allowances provided for in this article. The special allowance shall be applicable for the entire period each member of the Group resides in China on duty with the Group, except as specified elsewhere in this Agreement.

Article 13. The Government of the Republic of China shall grant exemption from customs duties on materials, equipment, supplies and goods imported for the official use of the Group or the personal use of the members thereof and of members of their families, provided that their request for exemption from such duties has received the approval of the Ambassador of the United States of America or of the Chargé d’Affaires. Such material, equipment, supplies and goods shall not be subject to any Chinese excise, consumption or other tax, duty or impost. No export tax shall be charged on the material, equipment, supplies or goods mentioned above in the event of reshipment from China.

Article 14. The expenses of the cost of transportation of each member of the Group, his dependents, household effects and belongings to China from the United States of America or his last duty station, and from China to the United States of America or his next duty station shall be reimbursed to the United States of America by the Government of the Republic of China, except as otherwise provided in this Agreement.

Article 15. Members of the Group shall be entitled to compensation for expenses incurred in travel in the Republic of China on official business of the Group. Such expenses shall be reimbursed to the Government of the United States of America by the Government of the Republic of China except for expenses of travel by transportation facilities of the Group, the total cost of which is reimbursed by the Government of the Republic of China as provided in Article 28.

Article 16. The term of duty for members of the Group shall normally be two years. If the Government of the United States of America shall recall any member of the Group before the termination of the two-year term of duty except for reasons set forth in Articles 4 and 5 of this Agreement, expenses incident to such transfer shall not be reimbursed to the Government of the United States of America by the Government of the Republic of China.

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Article 17. If any member of the Group, or any member of his family, dies in the Republic of China, the Government of the Republic of China shall reimburse to the Government of the United States of America the costs incident to the transportation of the body to such place in the United States of America as the surviving members of the family may decide, but the cost to the Government of the Republic of China shall not exceed the cost of transporting the remains from the place of decease to New York City. Should the deceased be a member of the Group, his services with the Group shall be considered to have terminated fifteen (15) days after his death.

Title V

Requisites and Conditions

Article 18. The decision as to what supplies, services, facilities and equipment are necessary for the Group shall be made in consultation with the appropriate Chinese authorities. The Government of the Republic of China shall provide, however, without cost to the Group, suitable living quarters for personnel of the Group and their families and suitable buildings and office space for use in the conduct of the official business of the Group. All living and office quarters shall conform to the standards prescribed by the United States military services for similar quarters. Official supplies and equipment of American manufacture required by the Group shall be furnished by the Government of the United States of America which shall be reimbursed for the cost thereof by the Government of the Republic of China. Official supplies and equipment of other than American manufacture shall be provided without cost to the Group by the Government of the Republic of China. The cost of all services required by the Group, including compensation of locally employed interpreters, clerks, laborers and other personnel, except personal servants, shall be borne by the Government of the Republic of China. Such services may, by agreement between the Group and appropriate Chinese authorities, either be supplied by the Government of the Republic of China or be obtained directly by the Group.

Article 19. All communication between the head of the Government of the Republic of China and the Group shall be through the Ambassador of the United States of America to the Republic of China or, in his absence, the Chargé d’Affaires. The Chairman of the Group and his appropriate subordinates shall have direct access to the appropriate Chinese civil and military officials on matters pertaining to their respective responsibilities in the Group.

Article 20. The Government of the Republic of China shall maintain a suitable balance on deposit with the Federal Reserve Bank of New York as fiscal agent of the United States of America against [Page 835] which the Government of the United States of America shall be authorized to draw in reimbursement for expenses incurred under Articles 12, 14, 15, 17, 18 and 28 of this Agreement. The Federal Reserve Bank of New York shall periodically furnish the Government of the Republic of China with appropriate statements covering the amounts drawn against this balance.

Article 21. The service courts and authorities of the Government of the United States of America shall have the right to exercise exclusive jurisdiction over all offenses which members of the Group may commit in the Republic of China. If any cases arise in which the service authorities of the Government of the United States of America prefer not to exercise such jurisdiction, a written statement to that effect shall be sent to the Government of the Republic of China through diplomatic channels after which the Chinese authorities shall be free to exercise jurisdiction.

No member of the Group shall be subject to the jurisdiction of Chinese civil or administrative courts with respect to any act or omission which, as determined by the Chairman of the Group, occurred in the course of his official duties.

Article 22. So long as this Agreement, or any extension thereof, is in effect the Government of the Republic of China shall not engage or accept the services of any personnel of any third government for duties of any nature connected with the Chinese armed forces, except by mutual agreement between the Government of the United States of America and the Government of the Republic of China.

Article 23. The Group shall extend advice and assistance only to such units of the Chinese armed forces as may be agreed upon by the two Governments.

Article 24. As part of the Group program the Government of the Republic of China shall be permitted to send selected students to ground, naval, and air technical schools in the United States. Such students shall be subject to the same regulations as are United States students and may be returned to China without substitution for violation thereof. Numbers and detailed arrangements shall be mutually agreed upon and shall be kept at a minimum for essential requirements. All Chinese requests for military training of Chinese personnel in the United States shall be submitted only through the Group. The procurement of the requisite interpreters to enable training to be initiated shall be undertaken by the Government of the Republic of China as a matter of high priority.

Article 25. Military equipment necessary in connection with Group programs shall be provided from United States and Chinese sources insofar as practicable and the Government of the Republic of China shall purchase arms, ammunition and military equipment from powers [Page 836] other than the United States of America only on the basis of mutual agreement between the Government of the United States of America and the Government of the Republic of China. The Government of the Republic of China shall procure United States military equipment and supplies only as agreed by appropriate United States governmental agency.

Article 26. Disclosures and exchanges of classified military equipment and information of any security classification to or between the Government of the United States of America and the Government of the Republic of China will be with the mutual understanding that the equipment and information will be safeguarded in accordance with the requirements of the military security classification established thereon by the originating Government and that no redisclosure by the recipient Government of such equipment and information to third Governments or unauthorized personnel will be made without specific approval of the originating Government.

Article 27. In places where United States medical personnel and facilities are not available, the Government of the Republic of China shall provide suitable medical attention and, upon request shall evacuate patients to such place in China as United States medical facilities may be available.

Article 28. Necessary transportation and communications for the internal administration of the Group may be furnished by the Government of the United States of America in accordance with requirements. Expenses incurred under this article shall be reimbursed to the Government of the United States of America by the Government of the Republic of China in accordance with the procedure prescribed in Article 20.

Article 29. As part of the program of the Group, the Government of the Republic of China agrees to establish in China a Service School System including Technical Schools for the training of selected Chinese personnel.

Article 30. Articles 24, 25 and 26 of this Agreement shall not become effective until notice is given by the Government of the United States of America to the Government of the Republic of China that legislative authority to carry out the provisions thereof has been obtained. The executive branch of the Government of the United States of America agrees to use its best efforts to obtain the enactment of such legislation.

In witness whereof, the undersigned,

. . . . . . . and . . . . . . . duly authorized thereto, have signed this Agreement in duplicate, in the English and Chinese languages, in Nanking, this . . day of . . . . . one thousand nine hundred forty-six.