166. Letter From the Foreign Minister of the Republic of China (Yeh) to the Secretary of State1

Dear Mr. Secretary: During your recent visit to Southeast and East Asia, your attention must have been drawn to the new economic offensive launched by the Soviet and Chinese Communists in these areas. While the Soviet policy in this regard is obviously to counteract United States aid programs, the intention of the Peiping Communist [Page 338] regime is to employ trade relations as a means to win over the support of the Chinese communities abroad, especially in countries which have accorded it recognition. Our reports from these areas indicate that the Chinese Communists have achieved some measure of success. My Government views these developments with particular concern.

Prior to your arrival at Taipei, President Chiang had, in fact, intended to take up the matter with you, but time was not available for a full discussion during your brief sojourn here. I am now directed by the President to present to you herewith two memoranda. Memorandum A2 deals with a regional and interregional economic plan brought into relationship with United States aid programs to counter the Communist economic penetration in Asia. Memorandum B3 outlines the present position of the Chinese communities in Southeast Asia and a plan to strengthen the anti-Communist attitude of the Chinese residing in these areas.

It is earnestly hoped that the United States Government will give serious study and consideration to the recommendations set forth in the memoranda.4 My Government is prepared at any time to enter into technical discussions with yours concerning the plans contained in these documents.

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Wishing you continuing success in your effort to serve the cause of freedom,

Yours sincerely,

George K. C. Yeh
  1. Source: Department of State, Central Files, 761.00/4–956.
  2. Memorandum A, attached but not printed, is entitled “A Regional Economic Plan for Free Asia to Counter Communist Penetration”. It reviewed the economic situation in Asia—seen in Taipei as dangerously subject to Communist economic penetration—and proposed economic countermeasures to meet the Communist challenge. Among the measures proposed were a boycott of all trade with Communist nations, the establishment of an Asian payments union to facilitate international payments, the development of a regional plan for economic development, and the creation of a program to better utilize and stockpile agricultural surpluses. A regional conference was proposed to develop and coordinate these proposals.
  3. Memorandum B, entitled “Joint United States-Free China Program to Organize Overseas Chinese against Communism”, also attached but not printed, listed as objectives: “A. To prevent the Chinese Communists from using the overseas Chinese in Southeast Asia as tools in infiltration and subversive activities. B. To enhance the prestige of and support for the Government of the Republic of China among the overseas Chinese. C. To increase the confidence of the overseas Chinese in American leadership among the free nations and through these Chinese to help spread such confidence to the local peoples of Southeast Asia.” To accomplish these objectives, the United States was asked to provide financial and technical assistance for such proposals as the publication of anti-Communist newspapers and periodicals, the establishment of an overseas Chinese book company, the expansion of the Taiwan school program in overseas Chinese communities, the establishment of a banking corporation to assist overseas Chinese economic enterprises, and the promotion of properly oriented Chinese motion pictures.
  4. A note on the source text in an unknown hand reads: “reply sent April ’56”. No reply has been found in Department of State files.