893.50 Recovery/2–2349
The Under Secretary of State (Webb) to the Secretary of Commerce (Sawyer)
My Dear Mr. Secretary: I am enclosing a copy of a Top Secret memorandum of February 8, 1949 addressed to the National Security Council by the Executive Secretary of that group.
In compliance with the President’s decision expressed in this memorandum, the Department of State is continuing to authorize the Department of the Treasury to pay to the Chinese Government funds from the $125 million grants when requests for payment are received from the Chinese Embassy. The Department interprets this directive as indicating that this Government should continue to grant export licenses on materials purchased by the Chinese Government with funds from the $125 million grants, with the understanding that this action is to be taken within the limits of the quotas for such materials and that it does not involve any question of expediting shipments.
Sincerely yours,