893.50 Recovery/4–1248: Telegram

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

653. Embassy concurs text proposed letter contained Deptel 528, April 10 (Deptels 519, April 8,95 527 and 528, April 10) with exception following suggested changes.

Fifth paragraph proposed letter requires assumption by China of an unrestricted commitment which Chinese Govt might understandably feel unable to incur. Suggest last two sentences reference paragraph be revised to read as follows: “It is possible that my Govt may decide to treat some part of the assistance furnished to your Government pursuant to this letter as a loan or to require other terms of payment as may be authorized under the act with respect thereto, it being understood, however, that the agreement of the Chinese Govt shall be secured in advance of the acceptance by it of such part of the assistance to be furnished in the form of a loan or other terms of payment. In the event that some part of the assistance furnished is offered by the US Govt as a loan or on other terms of payment and the Chinese Govt shall have agreed to accept such assistance on such basis, then the terms of payment will be determined in accordance with the relevant provisions of act.”

In first paragraph proposed letter reference is made to “Foreign Assistance Act of 1948”. At end of first sentence of sixth paragraph reference is made to “Economic Cooperation Act of 1948”. Presume latter will be confirmed.

Finally, should not proposed letter contain covering sentence officially transmitting to Chinese Govt copy of the Act?

Stuart
  1. Post, p. 506.