793.00/12–1754: Telegram

No. 447
The Secretary of State to the Department of State

top secret

Dulte 5. Hoover, Robertson eyes only. Eden last night asked Secretary his views on “Oracle.” Secretary replied our latest intelligence does not indicate that Chinese Communist attack against offshore islands is imminent. Therefore, in view heated atmosphere resulting from P. W. issue and signing of US-Chinese Nationalist treaty he believed we should delay going forward with Oracle now and adopt a policy of watchful waiting. This will enable us to proceed with Oracle when attack seemed imminent or the situation quieted, whichever comes first.

Eden said he fully agreed since he also had reservations about carrying it out now.

It was also agreed that MacArthur and Denis Allen would this morning convey above to Corner (New Zealand) who came to Paris from London to get results of EdenDulles meeting re Oracle.

Dulles