Executive Secretariat Files

Note by the Executive Secretary of the National Security Council (Souers) to the Council

NSC 37/4

The Current Position of the United States With Respect to Formosa

Pursuant to NSC Action No. 179 c,77 the Secretary of State has furnished the enclosed memorandum setting forth the views of the Department of State with respect to specific and immediate steps which the United States should take with respect to Formosa.

The enclosure is accordingly circulated herewith for the information of the National Security Council and for the use of the NSC Staff in preparing a supplementary report on Formosa in accordance with NSC Action No. 179 d

Sidney W. Souers
[Annex]

Memorandum by the Secretary of State to the Executive Secretary of the National Security Council (Souers)

Subject: The Current Position of the United States with respect to Formosa

Pursuant to the request contained in the memorandum of February 4, 1949 from the Executive Secretary of the National Security Council that the Department of State furnish for the use of the NSC [Page 289]staff a statement of specific and immediate steps which the United States should take with respect to Formosa, the Department sets forth hereunder its views on this subject.

1.
The Department of State should strengthen and increase its representation on Formosa, and to that end should immediately detail a high-ranking officer to Taipei.
2.
Upon the arrival of this high-ranking officer at Taipei, he should approach General Chen Cheng, Governor of Formosa, along the lines set forth in paragraph 2 of NSC 37/2 of February 3, 1949.
3.
Following these representations to General Chen and the receipt of assurances from the latter that the governing authorities on Formosa are prepared to implement such assurances, the ranking Department of State officer should inform General Chen that the United States Government is prepared, under legislation approved by the Congress and by such other means as may be feasible, to give economic support for the economy of Formosa, designed to assist in developing and maintaining a viable, self-supporting economy on the island.
4.
Upon the receipt of appropriate assurances outlined in 3 above, the Economic Cooperation Administration Mission to China should proceed with arrangements for completing the pre-project engineering surveys of the industrial projects on Formosa which will contribute to the above-mentioned objectives and the Economic Cooperation Administration should undertake procurement for such of these projects as are approved after completion of the surveys.
5.
The Economic Cooperation Administration should also make a study of and submit recommendations for an over-all program of economic assistance to Formosa.
6.
In the initial stages every care should be exercised to minimize the appearance of United States official activities on Formosa and every effort should be made to discourage the further influx of refugees from the mainland.
Dean Acheson
  1. Agreement by NSC on February 3, 1949, that the Department of State should prepare a statement of specific and immediate steps which the United States should take with respect to Formosa.