Foreign Relations of the United States, 1955–1957, China, Volume III

228. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Robertson) to the Secretary of State¹

Washington, January 2, 1957.

SUBJECT

• OCB Progress Report² on U.S. Policy Toward Taiwan and the Government of the Republic of China (NSC 5503³)

The OCB Progress Report on U.S. Policy Toward Taiwan for the period from April 12 through November 21, 1956 will be considered by the National Security Council on January 3, 1957.⁴ The main points made in the report are the following:

U.S. defense arrangements in the area and the military assistance program were continued along established lines and adequately ensured the security of Taiwan (Paras. 3a, c, d). Working relations with the Chinese were good.

The Chinese Communists continued to increase their military capability and to call for the take-over of Taiwan by military force if necessary (Paras. 4, 9). The Communist propaganda and diplomatic campaign against the Chinese Government on Taiwan was intensified and it was increasingly difficult to maintain the international position of that Government even though it took some effective steps in countering the Communist campaign (Paras. 7, 8).

With the cooperation of the Chinese Government progress was made in strengthening the economy of Taiwan (Para. 3e). More attention needs to be paid to the expansion of the island’s productive capacity if Taiwan is to achieve and maintain a satisfactory rate of economic progress (Paras. 3e, 12, 13).

Since the report was approved by the OCB, two significant developments have occurred. Agreement has been reached with the Chinese Government for the construction of the $25 million Kung Kuan airfield in central Taiwan (Para. 16c). The Chinese have presented and U.S. agencies are cooperating in implementing revised and detailed programs for joint Sino-U.S. action to strengthen Taiwan’s trade, diplomatic, cultural and information activities in Southeast Asia⁵ (Paras. 7, 8).

Recommendation:

That you support approval of this Progress Report by the National Security Council.

1. Source: Department of State, Central Files, 611.93/1–257. Secret. Drafted in CA by Douglas N. Forman.
2. Dated November 21, 1956, not printed. (Ibid., S/P–NSC Files: Lot 61 D 167)
3. See vol. ii, Document 12.
4. At the 308th meeting of the National Security Council on January 3, the Council merely noted the Progress Report on NSC 5503. (Eisenhower Library, Whitman File, NSC Records)
5. On April 9, 1956, Foreign Minister Yeh wrote to Secretary Dulles outlining proposals for “A Regional Economic Plan for Free Asia to Counter Communist Penetration”, and a “Joint United States–Free China Program To Organize Overseas Chinese Against Communism”. See footnotes 2 and 3, Document 166.