893.6463/8–748: Telegram

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

1159. Relocation generators discussed by Stillman with Eximbank officials in presence Dept representative. Reaction was negative under present conditions and will probably continue to be so unless there is definite indication that ChiGov is itself taking constructive steps in North China situation other than with respect to Eximbank or other US financed projects. A particular stumbling block is widely held view here that Chinese have in fact been removing industrial facilities from North China. (ReEmbtel 1455 Aug 737).

It is suggested that this matter should be handled directly by NRC38 representatives with Bank. A statement from NRC would be desirable [Page 637] indicating steps being taken to expedite installation other 8 generators under this loan, and of justification of request for relocation generators Tientsin and Peiping in terms general policies ChiGov and any technical or other reasons which favor these locations as opposed to possible alternatives. Dept suggests such statement might be forwarded thru Emb, in which event Emb’s comments and recommendations are requested.

  1. Not printed.
  2. Chinese National Resources Commission.