811.42700 SE/4–1647: Telegram

The Acting Secretary of State to the Ambassador in China (Stuart)

439. Further Deptel 410 Apr 7, proposed Foundation to operate under direction Ambassador assisted by Chief Public Affairs Officer and bi-national board directors. Suggested US $250,000 initial installment to be followed by similar quarterly payments agreed upon as best means protecting conversion against inflation while guaranteeing adequate operating funds. Suggest Emb give immediate consideration personnel of board and preparation first annual budget including administrative expenses. Dept recommends selection local American as executive director. Proposed salary equivalent US $10,000. Request Emb outline first year program with following in mind:

US recipients. US students to study in China will be selected on basis knowledge language and interest further language study in view fact no instructions available English. Dept querying US centers Chinese language and area studies for interested candidates. Embs suggestions requested re numbers graduate and undergraduate students advisable accommodate, recommended institutions, size of [Page 1265] grants. Also re US professors to teach institutions China and recommended subjects, bearing in mind desired emphasis on liberal arts and sciences although some technology and agricultural extension may be included if Emb considers appropriate.
Chinese recipients. Purpose Act8 is give foreign students countries concerned opportunity to experience and absorb American academic atmosphere and freedoms. This not now possible most institutions China where emphasis is on Kuomintang and Confucian ideologies. Grants to Chinese students to study in China would therefore be used sparingly for present. However travel grants for selected Chinese professors, students, etc., to port debarkation US and return China appropriate if payable in Chinese currency.

Dept concurs Embs recommendation Chinese grantees be selected for high standard language facility and academic standing to make exchange profitable. Other possible projects Emb may wish include are endowed chairs Chinese universities for US professors, special grants for concerts, exhibits, libraries, translation projects, etc., in China. Appreciate Embs comments recommendations.

Draft by-laws for Foundation being prepared. Will be forwarded.

For your info Dept understands Chinese Emb has referred draft agreement Fulbright funds to Nanking. Dept would be interested obtaining informal expression views concerned Chinese officials which would assist negotiating agreement here.

  1. Public Law No. 584.