800.48 FRP/10–2347
The Consul General at Shanghai (Davis) to the Secretary of State
[Received November 4.]
Sir: I have the honor to refer to a recent exchange of telegrams (Shanghai’s Par 32 of October 14, 194795 and the Department’s [Page 1355] Rap 176 of October 17, 194796) in connection with the negotiation of a post-UNRRA Agreement with the Chinese Government, and to the extent of participation of voluntary and private agencies in the program proposed for China. There is enclosed herewith,97 for the information of the Department and the Embassy, an exchange of correspondence, with relevant attachments, between the Acting Relief Adviser and the Ministry of Foreign Affairs on this subject. It will be noted in these exchanges that the United States representatives have continued to press for early agreement on the establishment of a definite proportion of the program for implementation through voluntary agency channels, and thereby expedite the potential benefits of the program to China.
The representatives of the Ministry of Foreign Affairs have thus far resisted efforts to reach definitive agreement on the points specifically raised in the above connection. This resistance may be attributed to several causes. It is known, for example, that the Minister of Social Affairs, Mr. Ku Cheng-kang, is a strong supporter of the Kuomintang Party organization and has consistently endeavored to channel relief funds and supplies coming under his jurisdiction through governmental outlets for the benefit and strengthening of the Party. The only offset to this pressure is the welfare group working in the Ministry under the leadership of Mr. H. C. Chang. The latter has been in Europe and the United States since August in connection with the future of child-welfare activities and, therefore, unable to take the lead in supporting some of the desired post-UNRRA objectives within the Ministry. Without the Ministry’s consent, it would be difficult for approval to be given elsewhere in the Government for allocations on plans involving relief distribution through voluntary agencies. In this connection, it may be noted that repeated efforts to establish liaison with the Ministry in Mr. Chang’s absence have been unsuccessful.
Another difficulty in expediting even general agreement on the proposals advanced by U. S. representatives has been the suspension of Dr. C. M. Li, formerly Deputy Director-General of CNRRA. Dr. Li, it will be recalled, was designated as the chief informal negotiator by the Chinese Government. The Ministry of Foreign Affairs has consistently referred to him relief and other proposals (see my despatch no. 288 to the Embassy, dated September 2, 1947, a copy of which was sent to the Department98). It is known that Dr. Tung Ling specifically asked for CNRRA’s comments on the American recommendations involving voluntary agencies through Dr. Li. The latter’s enforced retirement has therefore had the effect of slowing down and [Page 1356] discouraging decisions of post-UNRRA significance both within CNRRA and elsewhere in the Government.
When Embassy representatives met with the Ministry of Foreign Affairs representatives in Nanking on October 22 to discuss further steps which were necessary or desirable prior to the signing of a Relief Agreement, the above points were raised with a plea for an early decision by the Chinese Government as to the extent of voluntary agency participation in the United States Foreign Relief Program. Dr. Tung took the view that such considerations would have to be held over until the Agreement was signed and until the Government appointed its liaison officer in accordance with Article II, section c of the draft Agreement. Dr. Tung emphasized that such an appointment could not be made until the Agreement itself was signed, and that all decisions of procedure and policy must await the appointment, and subsidiary designations to follow it. He was reminded, as forcefully as circumstances permitted, of the penalty to the Chinese people which was the inevitable result of such recalcitrance, and thereafter agreed informally to attempt to persuade higher officials of the importance of preparing to implement the major objectives of the Agreement as soon as possible after it was signed. Prior to the Acting Relief Adviser’s departure for Shanghai that same day, he was advised by Dr. Tung that the Vice Premier, Dr. Wang Yun-wu, would undertake informally the responsibility of coordination within the Government until an Agreement was signed, and would be available for consultation at the convenience of U. S. representatives.
The foregoing report indicates that no conclusive understanding will be reached with the Chinese Government as to the extent of voluntary agency activities under the relief program prior to the signing of the Agreement. It is felt, however, that a sufficiently detailed record of the U. S. position has been established to permit insistence upon a satisfactory resolution of these questions promptly after the Agreement has been signed.
Respectfully yours,