893.24 FLC/10–2848

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

No. 447

Sir: As authorized by the Department’s telegram No. 1407, October 6, 7 p.m.,41 repeated to the American Consul General in Shanghai as 1724, the Minister-Counselor addressed a letter to Dr. Tung Ling, Director, American Department of the Ministry of Foreign Affairs, confirming the minutes of the agreement which had taken place on September 21, 1948, regarding the Surplus Property Agreement. A [Page 725]copy of that letter dated October 8 is enclosed. There is also enclosed a copy of a reply from Dr. Tung Ling indicating the approval of the Chinese Government of the tentative agreement reached on September 21, and expressing the opinion that: “Since the approved minutes shall be binding on both Governments, the letters exchanged between us will be considered as adequate implementation of the Surplus Property Agreement”.

I shall appreciate being informed whether the Department agrees that this exchange of letters is all that is required to carry out what in Nanking we have considered to be no alteration of the agreement, but merely agreed measures for its implementation.42

Respectfully yours,

For the Ambassador:
Lewis Clark

Minister-Counselor of Embassy
[Enclosure 1]

The Minister-Counselor of the American Embassy (Clark) to the Director of the American Department of the Chinese Foreign Office (Tung)

Dear Dr. Tung: I am writing to acknowledge receipt of your letter of October 1, 1948,43 enclosing minutes of our meeting on September 21, regarding the Surplus Property Agreement.

This is to confirm to you that I have been authorized by the United States Government to say that it approves the agreement we reached, as reported in the minutes enclosed, as follows:

“We tentatively agreed as follows, subject to approval by Washton and the Chinese Government:

(1)
Subject to agreement on following points, cut-off date will be October 31, 1948, for surplus property and December 31, 1948, for scrap;
(2)
Mr. Clark said that the Army defines scrap as article which has no reasonable prospects of sale except for its basic material content, and added that owning agencies would have that definition of scrap in mind when determining articles to be scrap;
(3)
When Bosey finds that property declared surplus subsequent to June 30, 1948, is of value only as scrap, OFLC shall look into matter in endeavor to have declaration reviewed;
(4)
In any event, if property declared surplus is on reconsideration declared scrap by owning agencies, it will be made available to China as scrap;
(5)
Where property has been declared surplus after June 30, 1948, and prior to agreement on cut-off date, such property will be renotified to China as surplus and China will be given sixty days from such renotification to exercise her right to possession, and four, rather than six, months for removal after China has acquired right to possession;
(6)
As compensation for the withdrawal from Eniwetok, the United States will withdraw from the Surplus Property Agreement certain islands selected by Bosey in agreement with FLC;44
(7)
In response to Mr. Clark’s request, Dr. Tung Ling promised to do what he could to expedite the removal of properties from the Australian Mandated Territory; and, in return, Mr. Clark promised to assist in any way possible.”

I should appreciate being advised whether the Agreement has the approval of your Government and whether any further steps are necessary to implement this interpretation of the Surplus Property Agreement.

Very sincerely yours,

Lewis Clark
[Enclosure 2]

The Director of the American Department of the Chinese Foreign Office (Tung) to the Minister-Counselor of the American Embassy (Clark)

Dear Mr. Clark: In reply to your letter of October 8, 1948, regarding the minutes of our meeting on September 21, 1948, on the seven points in connection with the Surplus Property Agreement of 1946, I am glad to inform you that my Government has approved the agreement we reached as contained in the said minutes.

Since the approved minutes shall be binding on both Governments, the letters exchanged between us will be considered as adequate implementation of the Surplus Property Agreement.

Very sincerely yours,

Tung Ling
  1. Not printed.
  2. In telegram No. 1631, November 16, 6 p.m., the Department agreed that “exchange of letters [was] sufficient” (893.24 FLC/11–1648).
  3. Not printed.
  4. In telegram No. SFLC 3367, October 7, the OFLC Shanghai Office reported that Eniwetok, Kwajalein, Roi, Majuro and Makin were withdrawn by agreement with Bosey the same day (893.24 FLC/10–748).