800.48 FRP/10–1447: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received October 14—11:49 a.m.]
2073. Chinese most anxious have agreement signed soonest in view of expected favorable psychological repercussions on present convulsive [Page 1354] inflationary upsurge in Shanghai. Embassy agrees speediest signing desirable in present situation.
Following receipt Rap 157, Deptel 1247, October 8 (repeated Shanghai as Dept’s 1721), Embassy representatives have held several meetings with FonOff officials in order conclude negotiations on relief agreement. Reftel helpful in getting Executive Yuan approval to draft agreement. However, FonOff requests following:
- 1.
- Insertion “United States” article III (d) thus reading “the Chinese Govt will, upon request, advance funds against proceeds from the sale of United States relief supplies et cetera.” Embassy perceives no objection.
- 2.
- Insertion new paragraph a end article IX reading: “The Chinese Govt reserves the right to terminate this agreement whenever it deems such relief assistance as is provided in this agreement is no longer necessary.” FonOff officials state this suggested insertion requested by Executive Yuan; face saving intent patently obvious but Embassy recommends acceptance, unless objection perceived by Dept.94
[Here follows request for detailed instructions regarding preparation of agreement, such as size of paper, number of copies, and place of signing.]
- In telegram No. 1286, Rap 179, October 20, 10 a.m., the Department approved the insertion in article III (d) and found the insertion in article IX “not objectionable if valuable as face saving device although no other agreement was so amended”. (800.48/10–2047)↩