357.AD/9–1751: Telegram
The Acting Secretary of State to the Embassy in Korea
245. Urtel 256 Sep 17. When CINCUNC–ROK agreement in effect Dept prepared concur ur recommendation that when Mutual Security Act passed residual ECA responsibilities exercised by Emb be transferred to CINCUNC. Recommendation for Presidential action now being studied. Request you point out in discussions this matter in field that responsibilities under aid agreement re counterpart and Korean fon exchange have always been exercised by recommendations aid rep to Wash, and that such responsibilities will in future presumably involve consultation Wash agencies concerned with financial policies. Dept will continue desire Emb views financial and stabilization policies and desires that Emb continue participate actively after transfer responsibilities to CINCUNC in econ policies.
Re application accrued ECA counterpart to ROK overdraft, believe that it is more important to do this at appropriate time in connection stabilization effort than in relation negot aid agreement.
This tel State dist only.