711.93/12–3147: Telegram

The Ambassador in China (Stuart) to the Secretary of State

2480. Ministry of National Defense is pressing Foreign Office to conclude AAG agreement between U. S. and China. Ministry of National Defense holds that it is already carrying out terms of draft agreement submitted by U. S. to Foreign Office and that, for budgetary purposes, formal agreement should be concluded as soon as possible.

We have pointed out to Foreign Office that enabling legislation for Military Advisory Group China has not been passed although there is reason to believe that it will be considered in next session Congress. [Page 941] Chinese appear anxious to sign draft agreement as amended, including article XXIX, and agreed minutes and, although we perceive no basic objection thereto, we feel that because of long-period inactivity these negotiations Department may have in mind additional changes or amendments in light of changed situation.

It occurs to us that at least certain minor changes of phraseology will be required because of reorganization United States Armed Forces and that other more significant changes may be envisaged by Department because of proposed new directive for AAG which General Lucas will carry with him to Washington for discussion early January. We have informed Foreign Office question is being referred to Washington and we would appreciate Department’s instructions as soon as possible.20

Stuart
  1. The Secretary of State in telegram No. 53, January 13, 1948, 2 p.m., asked the Embassy to inform the Chinese Foreign Office that reorganization of U. S. Armed Forces had necessitated changes in the agreement and added it was seeking favorable action at the present session of Congress as to enabling legislation which it “considers more satisfactory basis Milit and Naval Mission than President’s wartime powers and believes conclusion AAG agreement under those powers at present time might embarrass passage legislation.”