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  4. Document 294

893.50 Recovery/1–1449

Memorandum by the Acting Secretary of State to President Truman

Washington , January 14, 1949.

Subject: Industrial Replacement and Reconstruction Program for Formosa

The Economic Cooperation Administration has suspended procurement authorization for all industrial replacement and reconstruction projects under its China aid program. In view of the strategic importance of Formosa to the United States and its physical separation from the area of conflict, the Department of State recommends the reconsideration of this decision insofar as it affects Formosa.

Robert A. Lovett