893.50 Recovery/6–2448: Telegram
The Secretary of State to the Ambassador in China (Stuart)
935. Assumption conclusion rural recon agreement not required prior July 3 correct (Embtel 1138 Jun 24).[Page 614]
In view circumstances set forth. Embreftel, Dept and ECA willing agree following revised Art II:
“The functions and authority of the Commission shall, subject to the provisions of the Act, and in particular Section 407 thereof, be as follows:
(1) To formulate, in consultation with and subject to the approval of the Govts of the US and China, and to carry out through appropriate Chi Govt, international or private agencies in China a coordinated program” etc.
Not believed Congress intended program should be formulated without regard wishes Chi Govt. Provision for Chinese majority Commission gave assurance program would have Chinese approval. By providing that program have prior agreement both Govts, foregoing language should meet Chinese objections, as indicated Chi Ambassador97 in conversation with Dept Jun 23,98 to implication Commission would be super-agency above Chi Govt subject only to Administrator. Language suggested para (1) Art II Embtel 1087,99 however, does depart clearly from Congressional intent and language Act.
If Emb can obtain FonOff statement in writing exchange notes has same binding effect as formal bilateral agreement (Embtel 1138), Dept and ECA will approve exchange notes for rural recon agreement but would prefer formal bilateral agreement. For your info Chi Ambassador has indicated Chi Govt preferred exchange notes in order avoid registration with UN and possible criticism “certain UN members”. He is being informed registration must be effected with UN in accordance with Art 102 UN Charter1 regardless form.
Sent Nanking as 935, repeated Shanghai as 1155.