Foreign Relations of the United States, 1948, The Far East: China, Volume VIII

893.50 Recovery/11–548: Telegram

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

Washington , November 5, 1948—7 p.m.

1555. Subject Art III Bilateral²⁷ particularly Deptel 929 June 25²⁸ and relevant problems listed Deptel 738 May 13 [15].²⁹

1. Department, ECA and Commerce in order appraise performance to date and as basis future Aid program planning desire Emb survey, in collaboration ConGens Shanghai, Tientsin and ECA Mission, existing temporary foreign trade regulations and Exim³⁰ Board, Cent Bank procedures from viewpoint internal consistency, effectiveness and equity of applications, appraisal of consequences, and consistency with Art III and self help principle.

2. This connection, list significant modifications in regulations and administrative procedures last 6 months, outstanding problems US business in China, and progress toward settlement.

3. Comment on changes and evaluate progress made towards objectives Art III. Report on Chinese compliance re oral assurances as to deleted subparagraphs 3a, b and c Art III Deptel 927 June 25³¹ Embtel 1226 July 5.³²

4. Recommend action Chinese Government might now be asked take in further implementation Art III.

5. Request preliminary radio summary, fuller report by mail and brief monthly summaries thereafter on significant developments.³³

Lovett

27. Economic Aid Agreement signed at Nanking, July 3, 1948, Department of State Treaties and Other International Acts Series No. 1837, or 62 Stat. (pt. 3) 2945. For correspondence on the negotiation of this agreement, see pp. 506 ff.
28. Ante, p. 574.
29. Ante, p. 519.
30. Export-Import.
31. Ante, p. 573.
32. Ante, p. 599.
33. In telegram No. 1675, November 19, 7 p.m., to the Ambassador in China, the Department requested information on self-help action attributable to U. S. encouragement; policy or administrative changes recommended by the Embassy or ECA which had not been adopted; and important policy changes which disregarded or were inconsistent with the ECA program and the self-help principle (893.50 Recovery/11–1948).