893.24 FLC/10–148: Telegram

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

1814. With Luboshez present we had further discussion Foreign Office today Surplus Property Agreement (Deptel 1356, September 23). Although final approval by Chinese Government is necessary, our position has been provisionally accepted subject to selection by Bosey in agreement with FLC of islands to be withdrawn in compensation for Eniwetok. New agreed minutes will be cabled when available.40 We did not raise question disparity as we feel Chinese position has been considerably weakened by their demand for compensation at this time for withdrawal Eniwetok. In accepting compensation in form withdrawal other islands rather than waiting adjustment under disparity clause they have given us strong argument for eventual waiver disparity clause. We still believe question of disparity clause can best be considered separately and at high level after conclusion of operations under Surplus Property Agreement.

Luboshez has seen this telegram and concurs.

Repeated Shanghai 887.

  1. Telegram No. 1823, October 4, 11 a.m., not printed; for text of minutes as formally agreed to by the United States and China, see letter from the Minister-Counselor of the American Embassy in China to the Director of the American Department of the Chinese Foreign Office, p. 725.