794A.5 MAP/10–1351: Telegram
The Chargé in the Republic of China (Rankin) to the Secretary of State
495. Oct 12 FonMin handed me fol reply dated Oct 12 to Emb communication dated, July 20 (mytel 92, July 20):1
“MinFonAff presents compliments to US Emb and has honor refer to Mins memo Aug 13, 19512 on steps initiated by Chi Govt to bring its mil and civilian expenditures under planned control. Min is now in position to inform Emb that pursuant to objectives set forth in the memo, Chi Govt has decided to adopt for the coming fiscal year a procedure for budget control, the salient features of which are as fols:
- (1)
- The Nationalist budget, both mil and civilian, and the provincial budget are to be first referred, for study and discussion, to the econ stabilization board whose recoms are to be submitted respectively to the Exec Yuan and the Prov Govt for approval and for subsequent legis.
- (2)
- The mil part of the Nat budget is to be prepared by the Min of Nat Def in consultation with MAAG, and then referred to the Econ Stab Board for action contemplated under (1) above. The MND will seek the advisory assistance of MAAG in matters relative to budgeting details.
- (3)
- After the Nat and Prov budgets have been adopted, any supplementation thereto or revision thereof shall fol the same procedure as prescribed under (1) and (2) above.
- (4)
- As to the budgets for the prefectures, municipalities, villages and townships, some gen principles are to be worked out by the ESB for the guidance of the Prov Govt in its supervision of the budgeting by the various levels of govt concerned.
- (5)
- During the enforcement of the budgets, statements of current expenditure and revenue shall be regularly reported to the ESB.
To implement the above procedure, the Exec Yuan issued, on Oct 1, 1951, instrs for the compilation of the 1952 Nat budget to the various agencies concerned to the fol effect:
- (1)
- Gen budget estimates for 1952 shall be in three parts listed
below, and each part shall be balanced by itself:
- (a)
- Mil budget estimates are to be compiled by the MND in consultation with MAAG. As to the resources, consideration shld be given to available funds from the treasury, US mil aid and that part of US econ aid set aside for the support of mil programs. Expenditures shall incl all regular, supplementary and special expenses.
- (b)
- Estimates for civilian expenditure and loan service expenses shall be compiled by the Office of the Comptroller Gen of the Exec Yuan. Resources shall consist of available funds from the treasury, and expenditure shall incl all regular, supplementary and special expenses.
- (c)
- Estimates of expenditure and revenue for production and construction projects are to be compiled by the Taiwan Production Board in collaboration with all production and construction agencies concerned. Resources shall incl all avail funds accrued or raised and funds derived from US econ aid. Expenditures shall incl all capital outlay and long-term working funds.
- (2)
- When the three parts of the budget estimates have been compiled, they shall be referred to the ESB for study and discussion, and shall thereafter be sent to the Comptroller Gen of the Exec Yuan for compilation and for approval by the Exec Yuan on or before Nov 15, 1951. The budgets so approved shall be submitted to the Legis Yuan for legis.
Similarly, the 1952 budget for the Prov Govt shall be referred to the Econ Stab Board for study and discussion before approval by the Prov Govt and its adoption by the Prov Peoples Polit Council.
To ensure the closest coop between the Chi and the US Govts in the implementation of the US Govt progs for Chi, the Chi Govt will welcome any comment which the US Govt may wish to make on the procedure as outlined above.”
Comment: From Amb, ECA and MAAG will be tele few days.