893.50 Recovery/5–648: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received May 6—6:24 a.m.]
1002. For ECA and Agriculture. Contents Deptel 663, May 3, 6 p.m., repeated Shanghai 803, most helpful. Embassy and Consul [Page 505] General in full agreement with Washington thinking on rural reconstruction program as therein expressed.
Regarding relationship RR19 Commission to Central Government, Embassy and Consul General believe commission should be on hierarchical level with and in close liaison to American Aid Council now announced as being set up by Chinese Government under chairmanship of Premier. Two American members of commission under law presumably would take direction from administrator, whose ultimate control over activities of commission would reside in his share of control over disposition of CNC proceeds from sale of aid commodities and his unilateral control over any US dollar funds allocated to work of commission. Believed important that commission should not be established at level where it would be a creature of Ministry of Agriculture.
Embassy would welcome Moyer’s presence in Nanking to assist in negotiation special bilateral agreement. Meanwhile will attempt develop here further ideas this general subject for submission to Washington. Gilpatric concurs.
Sent Department, repeated Nanking 772.
- Rural Reconstruction.↩