800.48 FRP/7–2547: Telegram

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

923. In conversation with Asst. Secy Thorp July 24 Chinese Amb inquired re total prospective funds for China under US Foreign Relief Program and emphasized importance large US grant and increased [Page 1329] food allocations to success controlled distribution system [in] coastal cities. Thorp replied along lines section (a) Deptel 904 July 22. Chinese Amb indicated he would convey info Nanking and that unavailability imports in magnitude envisaged for controlled distribution plan would require reconsideration its application. Thorp stressed doubling present rate wheat allocations from US during Sept–Dec, without which entire $30 million could not be procured, would require showing by Chinese relief imports could be distributed effectively. Amb stated Chinese intended apply IEFC52 increased allocations and hoped US would support application. Thorp replied tentative estimate possible availability 100,000 tons wheat from US Sept to Dec presumed Chinese could present effective case, but we could not undertake support Chinese application until program controlled distribution revised in light probable import availabilities could be reviewed.

Amb also indicated China about to present case Eximbank 7-year term credit finance cotton imports during remainder 1947 and first 9 months 1948.53 Thorp emphasized uselessness, his opinion, apply Eximbank for longer than 30 months term and 18 months more usual, and in any case credit would have to be self-liquidating through export requisite proportion textiles to hard currency areas. Amb stated short term difficulties since would require release more textiles for export and dollars than China could afford, but he would reexamine case.

Marshall
  1. International Emergency Food Council.
  2. For a summary of the Chinese request, see telegram No. 1009, August 12, 6 p.m., to the Ambassador in China, p. 1177.