800.48 FRP/8–1247: Telegram
The Acting Secretary of State to the Ambassador in China (Stuart)
1048. Rap 70. Following are comments re proposed text relief agreement transmitted Shanghai’s 1956 Aug 12 (Par 6). Subject to these comments you are authorized immediately to negotiate agreement with Chinese. In view of legislative history and positive language of Relief Act which are reflected in wording of parts of proposed agreement Dept desires to be consulted before any modifications are agreed.
Addition of words “unloading and warehousing at ports of reception in China” in Article I Para c indicates intention to assume responsibility for these functions. Persons here concerned with supply operations believe this would be most difficult to handle with personnel which can be made available to mission. Since it appears from statement in Shanghai’s 1960 Aug 12 that this provision is largely for bargaining purposes in order to obtain satisfactory commitments from Chinese it would seem that objective could be achieved by emphasizing in discussions our right if necessary to retain title and possession to US supplies under Para 1 e unless satisfactory arrangements at ports were agreed to by Chinese.
Dept assumes first sentence Article II Para a should read as follows: “All US relief supplies shall be distributed by the Chinese Govt and by established voluntary agencies in China, under the direct [Page 1340] supervision and control of the US representatives and in accordance with the terms of this agreement.”
Folowing para which coincides closely with final draft Italian Agreement and is in line with Relief Act provisions should be inserted as Para d Article II. “US relief supplies and similar supplies produced locally or imported from outside sources will be distributed by the Chinese Govt and voluntary agencies without discrimination as to race, creed, or political belief and the Chinese Govt will not permit the diversion of any of such supplies to non-essential uses or for export or removal from the country while need therefor for relief purposes continues. The Chinese Govt will not permit the diversion of US relief supplies or an excessive amount of similar supplies produced locally or imported from outside sources in the maintenance of armed forces.” Para d as proposed in Shanghai’s 1956 would then become Para e. Dept assumes in latter para that “distributed” should be substituted for “conducted” to make sentence grammatically correct.
In connection Para e Article II as proposed in Shanghai’s 1956 Dept raises question whether it is necessary to include reference to distribution system in such precise detail in relief agreement. From our standpoint would seem preferable to refer in more general terms to installation control systems with objective of assuring distribution of relief supplies to all classes of population irrespective of their purchasing power. Reference in written relief agreement to specific cities and to consultation with US representatives gives impression that as condition of relief we intend officially to participate in development of details of control distribution plans and thereby assume large measure of responsibility for its operation. Could we not achieve same end by more general type of reference suggested above coupled with informal understanding with Chinese that we would be consulted in development of plans? Under other provisions of the agreement we can, of course, withdraw our assistance at any time if we are not satisfied with the way the Chinese are operating program. Dept would appreciate further comment on this point before approving this para.
Dept tried without success to alter language Relief Act which requires local sales proceeds be used for relief and work relief. Language similar to that proposed in Shanghai’s 1956 in Para c Article III was specifically rejected by Congressional Committee. In view this history feel it necessary to use original language “relief and work relief” although recognize unfortunate connotation “work relief” in China.
In connection with Para d Article III Dept not clear as to meaning [Page 1341] of “certain urgent relief projects being undertaken by Chinese Govt organs and voluntary agencies”. We have no objections to this on assumption that projects referred to are ones which would normally be eligible for assistance from proceeds sale US supplies and Chinese would be reimbursed for such advances from the special fund when sales were made. Sent Nanking as 1048 repeated Shanghai as 1404. Rome for Allen67 as 1469.
- Richard F. Allen, Field Administrator, Foreign Relief Program.↩