794A.5/1–2550: Telegram

The Secretary of State to the Embassy in China

top secret

74. Urtel 121 Jan 21.1 Question flexibility being explored with ECA. Dept believes, however, that significant progress in direction Wu and Jen objectives possible only if Gimo aware such steps indispensable survival Chi Govt Taiwan and takes determined forceful action accordingly. Successive rewards within capacity US Govt cannot be decisive factor and US Govt shld not place itself in position promising subsidize Chi Govt through additional aid which attempted equate “sacrifices” Chi shld make in own interests.

Acheson
  1. Not printed. In this telegram, Mr. Strong expressed support for the request of ECA officials for flexibility in extending support, within the limits of available U.S. funds, for the efforts of Governor Wu and Finance Commissioner Jen toward resolving the Chinese Government’s financial deficit by reducing military expenditures and the size of the military establishment. The particular sentence in telegram 121 on which telegram 74 was commenting read as follows: “Jen, although generally over-optimistic, truthfully believes he can get Generalissimo make further reductions month by month if each time he can come up with a little more from US as reward.” (894A.00R/1–2150)