893.50 Recovery/3–2549

Memorandum on China Aid Program for an Interim Period After April 2, 1949 16


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In summary, the proposal17 now presented for consideration is as follows:

Extension of the present authorization and appropriation so as to enable the funds from the existing appropriation of $275,000,000 to be obligated after April 2, when the present authorization and appropriation expires. While the proposed amendments provide for the availability of funds for obligation until December 31, 1949, obligation of funds for program purposes, as distinguished from administrative expenses, probably will be completed before June 30, 1949 if the ECA commodity program is carried forward substantially as at present.
A modification in the procedure whereby the Administrator spends China Program funds, making it possible for such funds to be used to assist the Government of China or such other beneficiaries in China as the President may authorize. This would enable aid to be furnished when desirable without the necessity of a formal agreement with a receiving government.
Provision for adequate time, funds and administrative authority to supervise distribution and end-use of all supplies authorized under the program, and thereafter, if no further program is required, to conduct an orderly liquidation of the ECA China Mission. An upward revision of $1,100,000 in the administrative expense ceiling to be available until December 31, 1949 is recommended.

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  1. Prepared by the ECA and transmitted to the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations.
  2. For Chinese proposals on aid legislation, see letter of March 31 from the Chinese Ambassador (Koo) to the Secretary of State, p. 671.