893.50 Recovery/6–2848

Memorandum of Conversation, by the Assistant Chief of the Division of Chinese Affairs (Freeman)

Mr. Tsui called this afternoon in response to our request and I handed him the original and one copy of the note dated June 28, 1948 and signed by the Under Secretary outlining the President’s terms for the disbursement of the $125 million grants in aid authorized in Section 404(b) of the China Aid Act of 1948. I also handed Mr. Tsui a draft in duplicate of a suggested note (copy attached)65 which, I stated, the Chinese Embassy might possibly wish to use in replying to the Department’s note.

Prior to handing the note to Mr. Tsui, I explained to him that at 12:45 p.m., immediately on receipt of the signed note from the Under Secretary’s office, Mr. Sprouse had attempted to get in touch with both Mr. Tsui and Minister Tan by telephone but without success. I stated that Mr. Sprouse had left an urgent request at the Chinese Embassy for Mr. Tsui or Minister Tan to call Mr. Sprouse or myself, but that having received no word at 3:30 p.m. I called Mr. Tsui and informed him that the note had been signed and was ready for delivery. (Mr. Tsui arrived at the Department at 4:00 p.m.)

Occasion was taken to inform Mr. Tsui that, when formal written requests were made by the Chinese Embassy for disbursement of funds under these grants, it would be appreciated by the Department if such [Page 104] requests were made in quintuplicate. Mr. Tsui assured me that this would be done.

I also informed Mr. Tsui that the Department was planning to instruct the Embassy in Nanking by telegraph66 to make a copy of the note available to the Chinese Ministry of Foreign Affairs.

  1. Not printed.
  2. Telegram No. 956, June 29, 8 p.m., to the Ambassador in China, not printed.