893.50 Recovery/9–1648

Memorandum by the Director of the Office of Far Eastern Affairs ( Butterworth ) to the Under Secretary of State ( Lovett )

Is my understanding correct that the following conclusions can be drawn from the discussion that you and I had with the Secretary on September 17:15

That he is willing that officers of the Department participate at the working level with representatives of ECA in drawing up alternative programs of economic aid for China to be submitted for policy determination, on the understanding that by such action he would not be in any way committed to support these or any such proposals since he believes the Secretary of State should review the position towards the end of the year when the current program16 will have been longer in operation; that it would be his understanding that such proposals as are formulated should be generally consistent with the policy considerations which governed the present China Aid Program and should be designed to cover the period from April 3, 1949 to June 30, 1950; that as regards military aid, it will be sufficient for [Page 670] ECA, for planning purposes, to assume that military aid to China will be forthcoming at least to the extent required to service and supply existing American equipment in the hands of the Chinese Government.

W. W[alton] B[utterworth]
  1. Marginal notation: “Yes L[ovett]”.
  2. Established under the China Aid Act of 1948, approved April 3, 1948; 62 Stat. 158.