Foreign Relations of the United States, 1949, The Far East: China, Volume IX

893.50 Recovery/2–249: Telegram

The Consul General at Peiping (Clubb) to the Secretary of State

Peiping, February 2, 1949—6 p. m.
[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 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.

Clubb

67. Not printed; it directed liquidation of the ECA Peiping office and turning over to the Consulate General there of residual stocks of wheat and flour.
68. Ritchie G. Davis, Special North China Representative of the Chief, ECA China Mission.
69. Displaced persons.
70. Chinese Council for United States Aid.