893.50 Recovery/5–2048: Telegram

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

916. For Dept and ECA. After consultation with ConGen Shanghai, Embassy recommends that total high level advisers should be held to 9 or 10 exclusive of those sitting on or attached to projected rural rehabilitation commission. (Ref Deptel 696, May 7, and Embtel 868, May 13.) Men selected should be absolutely first class and recognized as authorities in their respective fields. Sine qua non is that they be on US Government payroll (presumably ECA) and the prior understanding exists that if they are frustrated, fenced in or their advice disregarded they will be ostentatiously withdrawn with public statement of reasons. Our specific recommendation re locations follows: Adviser on foreign exchange for Central Bank; adviser on. food procurement for Ministry of Foods; adviser on land utilization and another on forestry, both for Department of Agriculture and Forestry; adviser on communications for Ministry of Commerce; adviser on labor relations for Ministry Social Affairs; adviser on taxes and budget expert, both for Ministry Finance; expert on public administration, possibly best attached to President [of] Executive Yuan.

In view breadth certain above fields, additional subordinate technicians might be required bringing total American advisory group not to exceed 20.

Although specific numbers and locations have not been discussed with Chinese Government, there is no doubt but that from Gimo down receptivity exists. Embassy agrees on wisdom of awaiting Lapham’s arrival and his opportunity to study question on ground before carrying matter further with Chinese.

Sent Department as 916; repeated Shanghai as 407.