893.50 Recovery/5–2448: Telegram

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

773. Text draft China Aid Bilateral Agreement being sent following telegram68 for immediate presentation Chinese Govt to allow time study and translation as suggested by Embassy. Emb requested inform Chinese that present text is draft to which US may wish make [Page 524] subsequent additions or modifications; that agreement has been written substantially in accordance with statutory provisions or legislative history of China Aid Act; that US is treating draft agreement and negotiation thereon as confidential and requests ChiGovt do likewise.

NAC69 considering advisability inclusion Article VIII requiring ChiGovt consultation with US Govt regarding exchange rate policy. Similar article requiring consultation International Monetary Fund or US Govt being included European Agreements. Emb should delete Article VIII and parenthetical note in text presented ChiGovt, renumbering subsequent articles accordingly.

Delete text Article III (Three) in draft given Chinese, but retain numbered heading, adding parenthetical note, as follows: Govt of the US will submit provisions regarding improvement of commercial relations at later stage in the negotiation.

Substantive comments various points will be telegraphed prior June 1.

  1. Infra.
  2. National Advisory Council.