Foreign Relations of the United States, 1947, The Far East: China, Volume VII

711.93/3–1147

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

No. 552

Nanking, March 11, 1947.
[Received March 21.]

Sir: I have the honor to refer to the Department’s instruction no. 100 of October 18, 1946,¹ with which was enclosed a copy of a draft exchange of notes between the United States of America and the Republic of China for the termination of the Sino-American Special Technical Cooperative Agreement of April 15, 1943.²

There are now enclosed copies of the Embassy’s note of February 5, 1947 to the Ministry of Foreign Affairs concerning the termination of the Agreement, and the English and Chinese texts, dated February 10, 1947, of the reply thereto from the Ministry of Foreign Affairs.³ (It will be noted that in the Chinese text of the Foreign Office reply, the date is left blank, but the English text bears the February 10 date; consequently the latter is considered to be the effective date.)

It will be noted that paragraph 3 of the notes represents an addition to the draft exchange of notes forwarded by the Department. This paragraph was inserted at the request of the Foreign Office, made in its note Mei–36/01871 of February 1, 1947, in order that the notes might accord with Article II of the Draft of Termination Agreement. Pertinent to this is enclosure no. 3, which is a copy of a memorandum⁴ on the subject from Rear Admiral Murray⁵ to the Minister-Counselor.

For purposes of record there are also enclosed two photostatic copies of a receipt, dated November 17, 1946,⁴ given by Lieutenant General Cheng Kai-min for materials as outlined in Sections I and II and the Appendix of Article II of the Draft of Termination Agreement.

Respectfully yours,

For the Ambassador:

W. Walton Butterworth

Minister-Counselor of Embassy

[Enclosure]

The American Minister-Counselor of Embassy in China (Butterworth) to the Chinese Minister for Foreign Affairs (Wang)

No. 688

Nanking, February 5, 1947.

Excellency: I have the honor to refer to our recent conversation during which it was mutually agreed that the Sino-American Special Technical Cooperative Agreement of April 15, 1943 has fulfilled the purpose for which it was drawn and should be terminated.

It is my understanding that during that conversation we reached agreement as follows:

1. The Sino-American Special Technical Cooperative Agreement shall be considered terminated to the mutual satisfaction of both Governments signatory thereof.

2. The Government of the United States of America having made provision to supply the Government of the Republic of China under the Special Technical Cooperative Agreement communication and other equipment for the installation and operation of a weather system and related communications system, the Government of the Republic of China shall as rapidly as practicable proceed with the installation of that equipment at the places previously agreed upon and shall establish and maintain a weather system and related communications system in accordance with previous agreement. The Government of the Republic of China shall make available to the Government of the United States of America the weather services thus provided for a period of five years. Prior to the expiration of this period, negotiations may be initiated for the continuation of these services beyond this five-year period. The Government of the Republic of China shall not, without prior agreement with the Government of the United States of America, transfer title to, or possession of, the weather and communications system equipment received from the Government of the United States of America.

3. With reference to the question of materials listed in Appendix A of Article II of the Agreement, all materials not so listed and later required may be furnished to the Chinese Government by the United States Government on a sale basis, the method of transaction to be in accordance with the accepted method of inter-governmental transfer of materials in effect between the signatory governments.

4. The provisions of the Sino-American Special Technical Cooperative Agreement relating to a year’s course of study in the United States for a selected group of forty trainees in reward for meritorious service during the war have been settled separately and to the mutual satisfaction of the two Governments signatory thereto.

It is my understanding further that we agreed that the points of agreement set forth above would become effective on the date on which a letter is received by me giving your confirmation that the agreement reached is as set forth above.

Accept [etc.]

W. Walton Butterworth

1. Not printed.

2. Agreement not printed; it was known as the SACO Agreement Its purpose was set forth in article I as follows:

   “For the purpose of attacking our common enemy along the Chinese coast, in occupied territories in China, and in other areas held by the Japanese, the Sino-American Special Technical Cooperative Organization is organized in China. Its aim is, by common effort employing American equipment and technical training and utilizing the Chinese war zones as bases, to attack effectively the Japanese Navy, the Japanese Merchant Marine, and the Japanese air forces in different territories of the Far East, and to attack the mines, factories, warehouses, depots, and other military establishments in areas under Japanese occupation.”

   The agreement was signed in Washington for China by T. V. Soong, Foreign Minister of the Republic of China; Tai Li, Deputy-Director of the Bureau of Investigation and Statistics of the National Commission of Military Affairs of the Government of the Republic of China; and Sinju Pu Hsiao, Assistant Military Attaché, Embassy of the Republic of China at Washington, and for the United States by Frank Knox, Secretary of the Navy of the United States of America; William J. Donovan, Director of the Office of Strategic Services of the United States of America; and Milton E. Miles, Chief of the United States Strategic Services in the Far East.

3. Latter not printed; it confirmed the understanding.
4. Not printed.
5. Rear Adm. S. S. Murray, Senior Member of the Naval Advisory Group Survey Board in China.
4. Not printed.