800.48 FRP/9–1347: Telegram
The Secretary of State to the Ambassador in China (Stuart)
1172. Following are Depts comments re terms relief agreement (Reurtel 1917 Sept. 13 Par 17).
Para 1, Article Ia. As indicated in Depts 1153 to Nanking83 repeated [Page 1348] to Shanghai as Deptel 1551 we do not want to be committed legally or morally to any specific amount of money. Whole program is being administered on flexible basis in order to avoid embarrassment in case circumstances warrant changes. In view of critical financial situation in a number of countries during next few months as well as supply situation which is even less certain than during past year principle of program flexibility considered most important. Under circumstances does not appear advisable give letter to Chinese at time negotiations.
Para 2, Article Id. Original wording or similar language giving U. S. complete freedom to include or reject items in program considered essential.
Para 3, Article Ie. Second sentence which is objected to by Chinese is the exact wording of portion Section 1 Relief Authorization Act (Public Law 84 80th Congress). It was inserted as an amendment in House and evoked considerable discussion. Dept considers it essential that relief agreement contain identical language on this point.
Para 4, Article IIa. Dept agrees with Emb that this wording should not be changed. Should be pointed out that phrase “direct supervision and control” also follows exact wording Public Law 84.
Para 5, Article IId. Phrase “without discrimination as to race, creed or political belief” follows wording Section 3a Public Law 84. In light this wording we have no authority to modify language agreement. Since the general program of controlled distribution is referred to in other parts of agreement there would seem to be no reason in any case to limit the principle of nondiscrimination. It is clear that Chinese Govt cannot be expected to assure equitable distribution in areas over which it has no control. Dept aware difficulty determining diversion of “an excessive amount” of relief supplies to military forces. However Section 5a3 Public Law 84 specifically requires termination relief if excessive amount of US supplies or similar local supplies are being used for maintenance of armed forces. Appears therefore we have no discretion to omit this phrase.
Para 6, Article IIe. Section 3h Public Law 84 prohibits granting of relief unless provision is made for control system so that all classes of people receive their fair share of essential supplies. Under circumstances believe following language would be acceptable: “The Chinese Govt will take appropriate steps regarding the distribution of US relief supplies and similar supplies produced locally and imported from outside sources designed to assure a fair and equitable share of the supplies to all classes of the people”.
Para 7, Article IIf. No objection to modifying para as set forth Par 17 except that phrase “as many of the population as possible” appears [Page 1349] too weak. Original language “all classes of the population” or similar phrase should be used. Since the sentence merely indicates intent and purpose of control system which will be established only “in such major urban centers of China as circumstance permit” it would not appear to constitute a binding obligation beyond the possibility of achievement. No objection deleting last clause second sentence beginning “and reserves the right, etc” (Urtel 1956, Sep 18).
Para 8, Article IIIc. No objection to use of phrase “with approval”.
Para 9, Article IIId. No objection to wording proposed by Chinese.
Para 10, Article IV. Copy draft agreement forwarded to Dept84 omitted Article IV. Assume it is identical with Article IV in Italian Agreement. Dept agrees with Emb that this Article is desirable and must be included though recognizing limitations on Chinese Govt’s ability to achieve objectives of Article. This Article also responsive to provisions in Relief Act.
Para 77, Article Vb. Do not like proposed Chinese substitution re inspection relief operations and activities. Suggest following language which would appear to meet Chinese point without specifically restricting our freedom to travel within certain area: “The Chinese Govt will permit and facilitate in every way the freedom of US representatives to supervise the distribution of US relief supplies, to travel, inspect and report in connection with any matters relating to this agreement and will cooperate fully with them in carrying out all of the provisions of this agreement.” Dept agrees with Emb re undesirability modifying second sentence except insofar as it is desirable to include provision covering rail and air transportation.
Para 12, Article IX. This Article follows closely terminology Public Law 84 Section 5a. In face of this we could not agree to modification. Sent Nanking as Depts 1172 repeated to Shanghai as Depts 1592.