893.50 Recovery/3–2349: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received March 24—6:28 a. m.]
639. From Merchant. Arrived Nanking March 22, plan return Formosa March 29. ReECAto 1169 and 1173,5 I assume contingent funds for any Formosan support program decided upon are provided for elsewhere than ECA China residue. 17,000,000 plus some JCRR6 inadequate for amount contemplated which roughly will require reconstruction 20,000,000 plus at minimum equivalent amount for fertilizer or consumers goods as offset local currency expenditures accompanying capital projects. On above assumption and only in belief division ECA residue as suggested reftels cannot cover effective Formosan program and at same time hold mainland economy together during period peace negotiations, I concurred Embtel 638, March 23.7[Merchant.]