893.50 Recovery/6–1448: Telegram

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

878. If exchange notes used for rural reconstruction agreement as suggested Embtel 1052 Jun 10, record must show clearly reasons for change and legal opinion such change does not affect binding character ChiGovt undertakings. It is opinion Dept and ECA [that] form rural reconstruction agreement should not be changed unless clearly established no difference under Chinese constitutional procedure between ratified agreement and unratified exchange notes. In case ERP92 countries no exchange notes being accepted as agreement under ECA Act and departure in form must, therefore, have sound legal basis.

Please indicate meaning FonOff statement submission to Legislative Yuan “inconvenient”. Success Joint Commission will depend largely upon degree effective support and participation ChiGovt and it is thus important have scope and purpose Commission fully understood and agreed to by ChiGovt as whole.

If Emb presents second rural reconstruction agreement to FonOff without prior submission to Dept and ECA, as indicated Embtel 1052, Jun 10, Dept assumes Emb will make clear to FonOff new draft subject possible revision by Dept and ECA.

  1. European Recovery Program.