893.20 Mission/7–146: Telegram

The Counselor of Embassy in China (Smyth) to the Secretary of State

1073. The Ministry of Foreign Affairs has informed Embassy that it has found the draft agreement for U. S. Military Advisory Group to China (contained in the Dept’s instruction No. 546, May 1) “on the whole acceptable”. It suggests, however, the following alterations:

(1)
That article 19 be redrafted to permit the Generalissimo to have right of ready access to the chairman of the Group, it being understood that Ambassador would always be kept informed. As a result of subsequent discussion in which Embassy explained the reason for the insertion of this article, the Foreign Office suggested that the words “all communications” might be modified. It seems likely that the phrase “all formal communications” would be acceptable;
(2)
That article 21 contain a provision to the effect that Chinese Government reserves the right to ask for the recall of any member of the advisory group “in cases of special incompetence or serious violations of Chinese law”;
(3)
That article 22 and 23 be deleted since “both of these articles would constitute limitations on Chinese sovereignty which cannot be intended by the U. S. Government; furthermore the handling of matters of this nature will in practice be guided by the spirit of good will and cooperation underlying the proposed agreement”.

General Marshall is of the opinion that the Chinese counter-proposals are reasonable and proper and that it would be in our Government’s interest to accept them forthwith.

Please instruct.

Smyth