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

893.50 Recovery/5–2848: Telegram

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

Washington , May 28, 1948—7 p.m.

811. Text bilateral agreement rural reconstruction agreed upon by Dept and ECA⁷⁹ being forwarded separate telegram⁸⁰ for Emb comment prior presentation Chigovt. Moyer⁸¹ [of] Dept Agriculture has participated discussions this agreement and believes draft meets necessary needs.

Thinking here that central emphasis rural reconstruction program should be placed development coordinated extension-type program among rural population with adequate attention concurrently to other activities such as research and training. In detailed planning Joint Commission would draw on Sino-US Agricultural Mission recommendations, experience and programs Chigovt, international and private agencies, including Mass Education Movement.⁸² Coordinated extension-type program should be initiated on scale consistent with what can be done soundly, probably in group of hsien in each of several provinces where factors most favorable for success.

Chigovt may have in mind general supervisory type Commission with Chinese members selected basis prestige [and] name rather than qualifications [to] plan program, which would establish boards and committees formulate recommendations for its consideration and action and would appoint executive officers carry out approved actions. Alternative would be working Commission which would itself formulate plans and as far as possible use own members as executive officers. We consider working Commission more desirable since would provide quicker action and avoid loss involved in bureaucratic handling program. This would place program under those qualified plan and implement it. Ultimate control would, of course, be exercised by Administrator. If Emb agrees, it should emphasize to Chigovt during negotiation greatest care be taken choose as members Commission most highly qualified persons available.

It would be expected that program would be worked out to provide cooperation with projects under Fulbright Act⁸³ and Smith–Mundt Act,⁸⁴ thus preventing duplication and providing assistance under China Aid Act rural reconstruction program for long range Smith–Mundt program.

Attention should be given to problem opposition to program from extreme right and left and it appears desirable program be identified clearly as program enjoying full support Chigovt, that support leading public figures be enlisted and that wide publicity be given intended purpose and scope program.

Moyer now planning depart China with ECA Reconstruction Survey Group⁸⁵ June 4 and will be available assist Emb in negotiation this agreement.

Emb will note that Article V para 1 re privileges and immunities differs from language general bilateral [agreement] under Sec 405 of Act. Firm decision re language this point not yet made but both agreements should in final form have same wording.

Emb comments draft bilateral rural reconstruction agreement requested soonest possible. If Emb has no proposed revisions, it should present draft agreement to Chigovt at once for study and translation and begin negotiation earliest possible. Opening negotiation this agreement should not be delayed by negotiation general bilateral under Section 405 of Act nor should it await Moyer’s arrival.

Lovett

79. Economic Cooperation Administration.
80. Supra.
81. Raymond T. Moyer.
82. Latter movement, headed by Y. C. James Yen, called for eradication of illiteracy, poverty, disease, and misgovernment in China.
83. Approved August 1, 1946; 60 Stat. 754.
84. Approved January 27, 1948; 62 Stat. 6.
85. The Reconstruction Survey Mission was sent to China to recommend the amount of funds to be allocated to reconstruction projects under the China Aid Act of 1948. The director of the mission was Charles L. Stillman.