893.50 Recovery/10–1149: Telegram

The Chargé in China (Strong) to the Secretary of State

Cantel 1186. October 7th conversation with Chang Chun,3 subject of several previous Cantels, of course, turned to question of US aid to China. To his question reference use of US $75 million,4 Embassy stated had no knowledge of policy decision regarding use of funds in China and US was going to be extremely cautious in this field.

Chang asked what conditions Chinese Government would have to fulfill to become eligible aid consideration. Replied could give only own unofficial views which were that Chinese Government show could effectively oppose Communists; the usual political, military, financial and economic reforms; and right of US withdraw aid if thought necessary.

Chang then asked whether President Truman’s discretionary fund could not be used in same manner of operation as JCRR. Individual projects to be documented by Chinese Government, US officials investigate each project, funds allocated by US for each approved project. Replied that this was an interesting approach but that Embassy was not competent to give opinion. Chang gave no indication of what specific projects he had in mind.

Chang then said Chinese Government aware of own failures and failings, and although cannot be changed over night, progress is being made. Agreed US Government had only friendship for Chinese and [Page 698] its criticism was well meant, but Chinese Government like very anemic man who relying first on own vitality to recover but needs blood transfusions land US must help patient to feet with such transfusion. We replied that nothing would give more pleasure than to be able to report to US Government favorably on Chinese Government programs internally and in relation to Communists.

Sent Department Cantel 1186, repeated Shanghai 565, Taipei 197, by hand Hong Kong.

  1. Chinese Minister without Portfolio.
  2. Authorized under the Mutual Defense Assistance Act of 1949, approved October 6; 63 Stat. 714.