811.42700 SE/6–2047: Telegram

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

1350. Reference Department’s No. 710, June 13, 11 a.m. The Ministry of Education has agreed to following changes in article V of the dratft agreement21a for utilization of funds in accordance with article VI b (1) surplus war property sales agreement: that clause d of the second paragraph shall be omitted, that in paragraph 3 second word be changed to “two” and the words “and (d)” be omitted and the phrase “[the] Chinese members by the Chief of Mission from a list of names submitted by the Government of the Republic of China” be also omitted. In lieu thereof, there shall be inserted in article V the following paragraph:

“In order to draw most effectively on the knowledge and experience of distinguished Chinese who are prominent in the field of education and culture, the board, in consultation with the Government of the Republic of China, shall designate a number of such persons to serve as advisors to the board, the number to be mutually agreed upon. The terms of tenure of advisors shall be the same as for the regular members of the board, as provided in article V.”

The Ministry approves of all other provisions as drafted.

Embassy wishes to suggest change in article XI Given the uncertain and rapidly changing foreign exchange situation, Embassy believes it would be unwise to provide that Government of China would deposit specified sums of money on given dates. In lieu of this provision, it is recommended that the article be rewritten to read that the Government of China will deposit such sums and at such times as the board may so order it and at the exchange rate prevailing on the date on the order or otherwise agreed upon but the total be drawn not to exceed United States dollars one million in any given fiscal year.

Embassy wishes to suggest advisability, in any negotiations the [Page 1278] Department may have with the Chinese Embassy in Washington, that any pro forma concession requested be granted, in order that we can secure the maximum of the substance we desire. One illustration of this is a request by the Ministry of Education that the Department consider some name other than United States Educational Foundation in China in order to convey the idea that effective cultural relations are reciprocal regardless of who puts up the money or actually directs any given program. A tentative suggestion by the Ministry is the United States–China Educational Foundation.

  1. The draft agreement referred to here is that of March 14; pertinent references to it can be followed through the draft of June 16, supra, which spelled out additions to and deletions from the earlier draft.