Foreign Relations of the United States, 1948, The Far East: China, Volume VIII

893.50 Recovery/4–1948: Telegram

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

Nanking, April 19, 1948—11 a.m.
[Received 1:39 p.m.]

702. Embassy agrees expenses Jimmy Yen program as understood here would require Chinese currency not US dollars for execution (reference Deptel 494, April 6, 7 p.m.). Exact position of “Yen program” in rural reconstruction still slightly cloudy in Embassy’s mind since essence of “Yen program” is believed to be an integrated education for good citizenship to be pursued primarily in rural districts. Embassy agrees such program of tremendous long term benefit and possible substantial immediate profit but has some doubts regarding wisdom inaugurating what is essentially a long term program with funds generated by what [may] prove to be one year US aid program. Since only local currency required for such program, it presumably could qualify as meritorious project for use of local currency sales proceeds of US aid supplies. An effort, however, should presumably be made to secure some undertaking from Chinese Government to continue support after first year. “Yen program” in any event should be tied to extension program recommended by Sino-American Agricultural Mission.

Embassy agrees highly important to implement findings joint Sino-American Agricultural Mission. This survey was seriously entered into and Chinese Government has been slow in implementing its agreed recommendations. We should now urge immediate steps, giving support from China aid funds along following lines which are discussed in memo of Agriculture to State about January 15 entitled “Agricultural projects in a program of aid to China”.³ (See also appendix of “revised preliminary programs for China …”.⁴)

1. Extension program materials for expansion present program on increased food production including fisheries and promotion export crops especially tung oil.

2. Materials for purchase additional equipment for fertilizer and insecticide manufacture, details to be supplied later.

3. Materials for agricultural land survey.

4. Books and technical publications for tour centers.

Above will require US funds now difficult to calculate but may run from 1 to 5 million. CNC funds can be used primarily for: (1) program agricultural extension and home demonstration, see page 4, 3a of January 15 memo; (2) survey work, agricultural economics, and enlargement crop [reporting] service according mission’s recommendations; (3) assistance land survey work, see page 5, January 15 memo; (4) certain AIS⁵ projects; (5) some assistance essential features CRM agricultural projects.

Effective results program rural reconstruction will be contingent upon full cooperation provinces. Provincial governments should be assigned duty carrying out progressive steps in program, specially implementation 1946 land law and improvement extension work at hsien level.

Personnel of joint rural reconstruction committee is of great importance. Embassy suggests Dr. Raymond Mover⁶ as one of the American members, the other preferably specialist on land problems. Chinese members should include Jimmy Yen or his supporter, S. Y. Chu (this being Ambassador’s personal recommendation), Chang Fu-liang, and Dr. Paul Ma or Dr. T. H. Shen, or possibly P. W. Tsou. Embassy suggests liaison committee to work with mission, including Minister of Agriculture, Director of Agriculture, Director of Agricultural Research Bureau, one representative each of Agricultural Education, Agricultural Extension, Agricultural Credit, Chief Export Products, and Land Administration to advise on and screen projects. Ministry of Agriculture might establish committee within Ministry to draw up projects for submission through liaison committee. Embassy suggests Economic Counselor and Agricultural Bureau Attaché be appointed advisors to joint commission of five and liaison committee.

Presumably some specialist US personnel could be provided from China aid funds but main group specialists could be supplied under Smith-Mundt bill.⁷ It is important projects under rural reconstruction program should be coordinated fully with present CRM, FAO,⁸ BOTRA,⁹ educational foundation under Fulbright bill,¹⁰ and other projects relating to agriculture.

It is hoped Minister of Agriculture of new Cabinet will have more recognition and power in carrying out agricultural improvement measures than present Minister¹¹ or his recent predecessors. In any event program should be taken up and agreed at high level, not necessarily through Ministry of Agriculture.

Sent Department 702; repeated Shanghai 287.

Stuart

3. Not printed.
4. Not printed; omission indicated in the original.
5. Agricultural Industries Service, a program sponsored by UNRRA to develop small-scale industrial plants in selected rural areas of China to serve as demonstration and training centers.
6. Of the Department of Agriculture.
7. Approved January 27, 1948; 62 Stat. 6.
8. Food and Agriculture Organization of the United Nations.
9. Board of Trustees for Rehabilitation Affairs of China.
10. Approved August 1, 1946; 60 Stat. 754.
11. Tso Shun-sheng.