893.50 Recovery/5–1349

The ECA Administrator (Hoffman) to the Secretary of State

Dear Mr. Secretary: Section 12 of Public Law 47, 81st Congress, makes funds available to the President for assistance in areas in China which he may deem to be not under Communist domination. By letter dated May 3, 1949,17 the President delegated to the Administrator of the Economic Cooperation Administration authority to render such assistance in such areas as the Secretary of State deems to be not under Communist domination.

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ECA is presently providing food for the ration systems of the cities of Tsingtao, Shanghai, Swatow and Canton. It is financing the import of petroleum into Tsingtao, Shanghai, Amoy, Foochow, Swatow and the island of Taiwan, is arranging the distribution of cotton in Shanghai, Canton, Tsingtao and on Taiwan. It has arranged for the distribution of fertilizer in Fukien, Kwangtung, Kwangsi, Chekiang provinces, in the areas immediately surrounding Shanghai, and on the island of Taiwan.

In addition to the foregoing, the Joint Commission on Rural Reconstruction is supporting projects in Szechwan, Hunan, Kwangsi, Kwangtung, Fukien, Chekiang, Ninghsia, Kansu provinces, and on the island of Taiwan.

Support formerly extended to projects in Kiangsu, Hunan, Anhwei and Chekiang provinces by the Joint Commission has been withdrawn as the areas concerned have been occupied by Communist military forces. In all cases, aid has been withheld from areas or projects actually occupied by Communist forces or where avowedly Communist governments have been installed.

I should appreciate your advising me that you deem the above areas to be not under Communist domination. I should also appreciate your advising me whenever you deem that the status of these areas changes so that termination of assistance in areas coming under Communist domination can be promptly effected.

Sincerely yours,

Paul G. Hoffman
  1. Not printed; a copy was transmitted on May 3 to the Secretary of State by William D. Hassett, Secretary to President Truman.