893.50 Recovery/6–2848

The Secretary of State to the Chinese Ambassador (Koo)

Excellency: I have the honor to inform you that, in accordance with the authorization contained in Section 404(b) of the China Aid [Page 101]Act of 1948 (Title IV of the Foreign Assistance Act of 1948) and subject to the provisions of the Act appropriating funds thereunder, the Government of the United States is prepared, for the period of one year following the date of enactment of the Act, to extend to the Government of the Republic of China additional aid through grants in the amount of $125,000,000 which have been appropriated for this purpose by the Congress in the Foreign Aid Appropriation Act of 1949. As stated in Section 404(b) of the China Aid Act of 1948, this aid is to be extended on such terms as the President of the United States may determine and without regard to the provisions of the Economic Cooperation Act of 1948.

Pursuant to the authorization under the Act, the President of the United States has determined that the extension of additional aid under these grants shall be governed by the following terms:

1.
The Government of the Republic of China shall, through its authorized representatives in Washington, present from time to time to the Secretary of State formal written requests for payment with respect to commodities or services procured or to be procured by it, supported by invoices, contracts or other appropriate documentation evidencing the transactions.
2.
The Secretary of State shall upon the receipt of such requests, supported by invoices, contracts or other appropriate documentation evidencing the transactions, authorize the Secretary of the Treasury to make the appropriate payments to the Government of the Republic of China.
3.
The Government of the Republic of China shall furnish the Secretary of State monthly reports showing in as much detail as practicable the purposes for which expenditures have been made out of funds provided to it under the authority of Section 404(b) of the China Aid Act of 1948.

I should appreciate receiving notification of your Government’s agreement to the terms set forth above for the extension of this additional aid under Section 404(b) of the China Aid Act of 1948.63 Upon the receipt of a note indicating your Government’s acceptance of these terms, the implementation of this Section of the Act may be promptly undertaken.

Accept [etc.]

For the Secretary of State:
Robert A. Lovett

Under Secretary
  1. The Chinese Ambassador in a note of July 1 concurred in the understanding set forth above. For text of note, see United States Relations With China, p. 948.