800.48 FRP/10–347: Telegram
The Consul General at Shanghai (Davis) to the Secretary of State
[Received 11:16 p.m.]
2343. Par. 25. 1. Following comments paragraph 2 Embtel 2004, September 30, to Department, repeated Shanghai 809. Reference also paragraph 4 Par 1786 and paragraph 4 Deptel 1172, September 19, to Nanking, repeated Shanghai as 1592.
2. In revised draft of relief agreement forwarded to Nanking87 which incorporates all points made in Department’s telegram under reference article II section a reads as follows:
“All United States relief supplies shall be distributed by agencies of the Chinese Government or by voluntary agencies as agreed upon [Page 1351] between the two Governments. Distribution will be under the direct supervision and control of the United States representatives and in accordance with the terms of this agreement.”
Would prefer Department’s support and that of Embassy for this wording exactly in favor of revision proposed by Dr. Wang for following reasons:
- a.
- If only intent of Chinese is to save face by having agreement specify that there will be joint approval of voluntary agencies used, wording quoted above protects them adequately although latter has been carefully phrased to emphasize that joint agreement will be sought primarily in determining extent of distribution by agencies of Chinese Government vis-à-vis voluntary agencies rather than individual approval of latter.
- b.
- Persistent difficulties in past 2 years encountered with Chinese in securing approval for distribution of UNRRA relief supplies through voluntary agencies; attitude of CNRRA and Foreign Office officials in course early USFRP negotiations in June; widespread resistance by provincial and local governments to utilizing experienced voluntary agency distribution channels for outlets of residual UNRRA supplies in regions and especially medical supplies, these and other indications point to continuing difficulties with the Chinese in reaching agreement on a relief distribution program through voluntary agencies. Prophesy struggle under any circumstances to achieve desired extent of voluntary agency relief distribution and financing and believe it will be helpful to have U. S. wording and U. S. interpretation thereof starting point for any further negotiation.
- c.
- Intention Acting Relief Adviser is to seek in advance of signing relief agreement Chinese approval of target voluntary agency program including list of agencies to be utilized and rough total supplies and local currency involved. Have concluded that only with arrangement of this kind allowing maximum flexibility and discretion to relief mission can effective private agency program be developed. Neither Department nor Embassy should lose sight of fact that pressures exerted by local groups on National Government where supplies of money are involved can be highly effective and that only way to offset this is to insist upon broad commitments from latter in advance.
Sent Department, repeated Nanking 1639.