Office of the Historian

893.00/4–649: Telegram

The Secretary of State to the Consul General at Shanghai (Cabot)

Washington, April 7, 1949—5 p. m.

607. For Merchant. Before authorizing action requested Taipei’s 97 Apr 6 Dept wishes you have benefit of reappraisal in light of info contained in Nanking’s 716 Apr 6 to Dept17 (which it is requesting [Page 310] Nanking to rpt to you) and fact that current legislation may well emerge from House–Senate conference with termination date Feb 15, 1950 or at any rate Dec 31, 1949. Final Congressional action this legislation not expected until just before Easter.

For your info ECA has already approached Dept informally as to possibility of diversion for mainland commodity program of whole or part of $17 million earmarked capital reconstruction Formosa. Dept referred NSC decision and rejected suggestion.

Your views would be appreciated.

Acheson
  1. Vol. viii, “Political and military situation in China”, chapter III.↩