893.50 Recovery/7–148

President Truman to the Secretary of State

My Dear Mr. Secretary: I am in general in accord with the position expressed in your memorandum to me of May 14, 1948, regarding the provision of additional aid to China as authorized by Section 404 (b) of the China Aid Act of 1948. It is my desire that the grants to China under this section of the Act be made under the following procedures: [Page 80]

The Chinese Government will, from time to time, submit to the Department of State requests for payment with respect to commodities or services procured by it, supported by invoices or other appropriate documentation evidencing the transactions.
The Department of State will examine the documentation submitted by the Chinese Government to determine that the request is not in excess of the total represented by the invoices or other supporting data, and will authorize the Treasury to make the appropriate payments to the Chinese Government.
The Secretary of State will request from the Chinese Government monthly reports showing in as much detail as possible the purposes for which expenditures have been made out of the funds provided to it under the authority of Section 404 (b) of the Act.

Attached is a copy of my letter to the Secretary of the Treasury31 informing him of this procedure and making an allocation of $13,500,000 to carry out the provisions of Section 404 (b) of the China Aid Act of 1948.

Sincerely yours,

Harry S. Truman
  1. Dated June 2, Department of State, United States Relations With China Washington, Government Printing Office, 1949), p. 947.