840.50 Recovery/7–2548: Telegram

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

1078. Various suggestions re exchange notes on establishment Joint Rural Recon Commission reported Embtels 1332 July 21, 1335 July 21, and 1358 July 24 and Shanghai’s 1664 July 25 noted. Dept and ECA offer following comment on Amb note to FonMin:

Introductory para including changes suggested Deptel 1029 July 14, agreed on.
Para (1) should remain unchanged. While we are willing you should indicate orally to FonOff understanding Commission decisions shall be reached by majority vote, it is not believed necessary add sentence in agreement proposed informally by FonOff for inclusion in agreed minutes. This would seem to be contrary to spirit of general agreement among members Commission rather than split vote between Chinese and US members. In this connection, we do not consider agreed minutes desirable or necessary.
Para (2) accepted with inclusion initial sentence subpara (e) suggested in Embtel 1358.
Emb comments to FonOff re para (3) approved and this para accepted with following reservations: Combining subparas (b) and (c) as suggested Embtel 1358 carries implication restriction land reform measures to “survey, register and appraise”. It would be preferable retain these subparas as set forth Embtel 1332. If FonOff unwilling approve, however, Emb should merge two subparas as indicated Embtel 1358 with deletion “including steps to survey, register and appraise agricultural land” set off by commas after “measures”. Extent of “land reform measures” would then be subject later discussion within Commission. Embtel 1332 makes no mention subparas (f) and (g). Are these to be retained?
Para (4) accepted with additions proposed Embtel 1358 and Shanghai’s 1664.
Deletion former para (5) re provincial and hsien officials and insertion “including the local officials concerned” after “Govt of China” in final para FonMin note to Amb proposed Embtel 1358 July 24 approved. Remaining paras renumbered accordingly.
Para (5) unchanged.
Para (6) accepted with addition two final sentences suggested by FonOff and approved by Embtel 1358.
Para (7) accepted with deletion “fiscal charges, including” and final sentence recommended Embtel 1358 and further deletion word “normally” after “charges”.
Para (8) unchanged.
Para (9) accepted with deletion clause first sentence re withdrawal US members Commission suggested by FonOff and approved Embtel 1358. As indicated Embtel 1358 entire second sentence should be retained.
In para (10) “paras (8) and (9)” in second sentence should be substituted for “paras (9) and (10)” due to renumbering paras.
FonMin note to Amb contained Embtel 1242 July 7 approved with inclusion additional wording described in 6 above.

Suggest use of “Govt of the US of A” throughout notes to be consistent with Economic Aid Agreement.