811.42700 SE/6–647: Telegram

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

710. Dept recd informally from preliminary conversation Chinese Emb similar reactions re preponderance American board members (Embtels 1155 May 27, 1227 Jun 6). Dept inclined agree Embs recommendation Chinese voice should be wholly advisory and requests Emb seek Chinese reaction to rewriting draft agreement accordingly. Dept believes important Emb emphasize to Chinese these funds differ entirely from Boxer Indemnity remissions. They are U. S. credits to be spent by U. S. Govt in China primarily to benefit [Page 1271] U. S. citizens but which will also aid indirectly some Chinese institutions and some Chinese citizens who will receive grants to study at American institutions in China or travel to U. S. Dept discussing these points informally Chinese here. Appreciate Embs reactions.