893.50 Recovery/8–1549
The Secretary of State to the Chinese Ambassador (Koo)
My Dear Mr. Ambassador: I refer to your letter of August 15, 1949 in which you request additional military and economic aid and propose a program for the use of funds available to the Economic Cooperation Administration under Section 12 of Public Law 47 (81st Congress), and to my letter of August 23 indicating that the Chinese Government’s proposals would be given careful consideration by this Government.
A thorough review of the military and economic factors bearing on your request has been conducted by the appropriate agencies of this Government.
This Government is at present providing economic assistance to China under the legislation to which you referred that authorized the continuation of aid initiated under the China Aid Act of 1948. Furthermore shipments of material procured either through agencies of this Government or through commercial channels under the $125 million grants authorized by Section 404(b)6 of the China Aid Act of 1948 are continuing.
The Congress by Section 3037 of the Mutual Defense Assistance Act of 1949, approved on October 6, 1949, authorized the appropriation to the President of $75 million “in consideration of the concern of the United States in the present situation in China” which may be expended “to accomplish in that general area” the policies and purposes declared in the Act. The legislation appropriating the funds required to implement the Act was approved by the President on October 28, [Page 699] 1949.8 Earnest consideration is being given as to where and under what conditions these funds are to be expended and in this regard the views of the Chinese Government are being taken fully into account.
Sincerely yours,