800.48 FRP/8–1247: Telegram
The Consul at Shanghai (Meyer) to the Secretary of State
Shanghai, August 12,
1947—8 p.m.
[Received August 13—3:42 a.m.]
[Received August 13—3:42 a.m.]
1960. Par 7. Re draft relief agreement submitted in Par 6,63 following comments apply to changes proposed:
- 1.
- In article I sections a, b, d, and e, are unchanged. Section c has been revised to permit U. S. agencies to provide for “unloading and warehousing at ports of reception in China” in addition to functions of “procurement, storage, transportation and shipment” as set forth in agreements with other countries. Inclusion is intended to be permissive and function may be delegated in option of relief [Page 1338] adviser as article itself specifically provides for exceptions. Point is technically covered also in second sentence of section e in article I. Modification of section c prepared in accordance with reasoning noted in paragraph 5 Dept’s reservations on assumption of this responsibility as set forth in paragraph d of Rap 4764 just received and will not be overlooked. Believe that specific provision permitting U. S. control of supplies in China should be left in first draft submitted to Chinese. Several complications such as (1) participation of private American import firms in flour allocation, (2) development of coordinated Chinese food procurement and import program and (3) workable procedure for quick turnover of supplies to Vol65 agencies. All ports of entry can, it is hoped, be satisfactorily worked out here in course of negotiations prior to signing of relief agreement. Maintaining of U. S. position that we intend to retain control of U. S. relief supplies up to point of allocation and primary distribution in China unless alternatives of our own choosing can be agreed upon with Chinese will expedite solution of complications mentioned.
- 2.
- In article 2 section c remains the same. Section a and b are expanded to cover explicitly activities through the Vol agencies. These insertions may be objected to by Chinese Govt on ground that they were not included in agreements with other countries and may, on that count, have to be later withdrawn or modified. Their inclusion in first draft will, it is felt, expedite the negotiation of satisfactory arrangements for the Vol agency programs.
- Section d is revised to prohibit any U. S. relief supplies from being used by the military in China on the assumption that program here will be of a narrower scope than that proposed for European countries and that in any event we would not want to be accused of directly supporting the Nationalist Army. Sections e and f have been revised to take into account the fact that Chinese-controlled distribution plans are just getting started and therefore uncertain.
- 3.
- In the revised article 3 sections a, b, f and g remain the same. Section c has the words “allied or special” substituted for “work relief” because of the unfortunate connotation of the latter term with certain CNRRA efforts in the past. Caveat given in Rap 47 replying to item c of paragraph 5 on same subject noted and will be carefully observed. Chinese will be informed that Dept must be consulted in advance on local currency expenditures other than relief in view of Congressional reservation. Also full report present plans this regard will be submitted as soon as possible.
- Section d is expanded to spell out the type of local currency advances [Page 1339] which will be needed immediately after the agreement is signed. Section e has had added reference to the cost internal transportation in view of comment in paragraph 4 Rap 18.66
- 4.
- Article IX is altered for the same reason that article II d has been changed. If these two changes are not made immediate foreign press reaction is anticipated when [text of finally] agreed document is published in view of previous criticism that UNRRA relief supplies have been used to support civil war.
- 5.
- Suggest Dept’s comments be sent to both Nanking and Shanghai and that they include in first instance all instructions as to substantive changes so that draft can be presented to Chinese as soon as possible. All changes proposed by the Chinese thereafter will be referred to Washington for approval.
Repeated Nanking by courier as 1408.
Meyer