893.50 Recovery/6–2049
Mr. Harlan Cleveland, of the Economic Cooperation Administration, to the Director of the Office of Far Eastern Affairs (Butterworth)
Dear Mr. Butterworth: Acting Secretary Webb’s letter to Mr. Hoffman of May 21 raises the point that more detailed specification of the location of Rural Reconstruction projects is necessary than that provided in Mr. Hoffman’s letter of May 13 to Secretary Acheson before it can be determined whether entry of Communist armies into a province means that the more limited areas in which the projects are being carried out are themselves dominated by the Chinese Communists.
I infer from Acting Secretary Webb’s letter that the question of assistance to areas which are deemed to be under Communist domination is not considered to arise at present with regard to projects in Szechwan, Kwangsi, Kwangtung, Ninghsia and Kansu provinces, or on the island of Taiwan. We would be pleased to have confirmation of this, or whatever statement of exception you find appropriate.
With respect to the remaining provinces in which Rural Reconstruction projects are being carried on, Fukien and Hunan, the more specific location of activities is as follows:
- (1)
- An integrated project in six hsien around Lunggen, northwest of Amoy, in Fukien. Our latest information is that the Commission has already decided to withdraw its support from this project.
- (2)
- A project to provide water buffalo, demonstrate use of fertilizers, and assist the development of farm cooperatives to supply cheaper credit to farmers, has been approved and is still operating in six hsien of the 7th Prefecture of Fukien.
- (3)
- There is some continuing work on a rural health program in the districts centering around Lingsen, Putien, Chingkiang and Lyngyen in Fukien.
- (4)
- Plans have been approved by the Commission for small projects combining several aspects of rural reconstruction work, operating through the Fukien Christian Rural Service Union and the Fukien [Page 652] Christian University, in several hsien immediately surrounding Foochow.
- (5)
- There is a program for seed multiplication and distribution spread widely over Hunan. It has been the practice in such projects to withdraw whenever Communist forces approach. This places the decision, unfortunately, upon the field personnel of JCRR. Unless it is possible to specify the parts of the province of Hunan that are Communist-dominated, the only practical alternatives appear to be to withdraw entirely from the province in the case of this type of project, or else continue to leave the decision to JCRR field personnel under appropriate instructions.
- (6)
- Lin Lake project is a small project west of Hengyang which is continuing through June under present plans.
- (7)
- The Tung Ting dike repair project, the biggest single one of all of the Commission’s projects, involves work of which 90% is around the northwest corner of Tung Ting Lake. This work is continuing. The work on the northeastern corner of the lake, which involved about 10% of ECA funds advanced to this project, has for some time been receiving no support from the Commission or from ECA.
I hope that the above specification of locality will be sufficient to permit any determination of Communist domination that it may be necessary in the future to make.
Sincerely yours,