Office of the Historian

894A.00/3–949: Telegram

The Secretary of State to the Consul at Taipei (Edgar)

Washington, March 9, 1949—3 p. m.

37. For Merchant. Deptel 30 Mar 2. Fol summary conclusions NSC 37/5 Mar 1 approved by NSC and Pres Mar 3:

[Here follows summary of NSC 37/5 printed on page 290.]

Full text NSC 37/5 sent pouch.

ECA now prepared approve industrial projects and proceed with program Formosa and awaiting Dept decision. In this connection, shld be noted that initiation program Formosa this stage while ECA program mainland still under way would probably draw less attention Formosa program than wld be case at later date when ECA activities mainland further restricted. Furthermore, contd delay might result further deterioration Formosan situation. Additional factor is time element connection with continuation China aid program, present plans for which set forth reftel.

Ur views requested.

Acheson