893.24 FLC/9–2148: Telegram

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

1742. Accompanied by Luboshez, we called Foreign Office September 21 and discussed surplus property agreement [re] Deptel 1335, September 17. Incidentally previous discussion took place without Luboshez’ presence because matter was raised at Foreign Office when we were discussing other matters and we did not have time to call him from Shanghai.

After lengthy discussion with Tung Ling, Chief American Section Foreign Office, regarding adamant position taken by him that Chinese Government stood by its position that cut-off date is June 30, 1948 and his insistence that Foreign Office was under pressure from Bosey to assure that declarations subsequent to June 30 were worth removing, we tentatively agreed as follows subject to approval by Washington and Chinese Government:

Subject to agreement on other points, cut-off date will be October 31 for surplus property and December 31 for scrap.
Where Bosey finds that property declared surplus subsequent to June 30 is of value only as scrap, OFLC has undertaken to look into matter in endeavor have declaration reviewed, maintaining firmly, however, that final determination solely with owning agency.
In any event if property declared surplus is on reconsideration declared scrap it will be deleted from record.
Where property has been declared surplus after June 30 and prior to agreement on cut-off date, such property will be renotified to Chinese as surplus and Chinese will be given 60 days from such new notification to take possession and 4 rather than 6 months for removal.
In return from [for?] having agreed to our withdrawal of Eniwetok from agreement, Chinese insist they be allowed to withdraw inaccessible islands sufficient to compensate for Eniwetok. They maintain we have agreed to compensate them for withdrawing Eniwetok and they seek this means to that end.

During discussion Dr. Tung undertook to use every effort to expedite removal of property from islands, particularly from Australian mandated territory.

We feel that, if we are to obtain concession from Chinese rigid position on cut-off date, agreement along above lines is likely necessary. Department’s instructions are requested. Luboshez has seen this telegram and concurs.

Sent Department 1742, repeated Shanghai 835.