893.50 Recovery/2–249: Telegram
The Consul General at Peiping (Clubb) to the Secretary of State
[Received February 2—12:36 p. m.]
167. Reference ECA telegram 430, February 1 from Lapham67 to Davis68 Peiping. Davis is proposing to Lapham residual stocks approximately 300 tons flour milled in China be distributed locally to charitable organs, DP69 camps, etc., with amount undistributed [at] time closure office be delivered Consulate General.
ECA Peiping will probably have enough time windup local operations as highly improbable [that] aircraft be permitted land Peiping in next few days. (Original ECA schedule called for windup by February 4.) Davis states legal title flour still with ECA virtue confidential agreement between CUSA70 and ECA at Shanghai approximately January 10. There being no indications in either Lapham’s reftel or standing Department instructions regarding particular disposition [Page 621]which this office would be expected make of any residual stocks, request instructions earliest.
My recommendation would be ECA make immediate distribution all stocks through existing municipal organizations which still controlled by original personnel (takeover estimated require approximately one month) and get full credit for operation as well as having wound up affairs properly leaving no encumbrance in Communist hands.