190. Telegram 726 from Geneva1

[Facsimile Page 1]

726. From Johnson.

1.
Reference paragraph 9 Mytel 725, following is substance Wang’s prepared statement:
2.
Now having reached agreement on question return civilians both sides to respective countries according to agenda, we should go on to discussion settlement other practical matters of concern to both sides. On basis same spirit negotiation and conciliation should be possible reach agreement quickly on this item also. He proposed each side put forward questions which each thought involved relations between two countries in order all could be considered. He then said he would like to put forward two points.
3.
First point was question of economic blockade and embargo imposed on China by United States. This was a major factor leading to tense relations between two countries. Shortly after PRC established US instituted embargo. Outbreak Korean War was seized upon as further pretext to intensify economic embargo and blockade. Such a policy was extremely unreasonable and unjust. Now that Korean War stopped long ago, less excuse than ever for continuation this policy which [Typeset Page 252] hindered improvement relations and created artificial barriers to trade and economic relations among nations. Frankly raising this question did not imply embargo caused formidable difficulties for Chinese, but policy unreasonable and unjust and did not benefit friendly relations between our countries and economic welfare [warfare] therefore should be revoked. Since opening of talks many [Facsimile Page 2] countries expressed hope we could agree on lifting embargo. He hoped we could meet aspirations these countries and improve relations between China and US.
4.
Second point he wished raise was preparation for Sino-American negotiations at higher level. Tension in Taiwan area key question between China and US. Chinese Government had made series efforts ease tension Taiwan area. At Bandung Conference Chou En-lai stated Chinese and American people were friendly, and Chinese did not want war with United States. He proposed we sit down to negotiate elimination tensions Taiwan area. Dulles stated July 26 press conference whatever differences existed should not be settled by recourse to force which might lead to international war. Wang said we should proceed with concrete arrangements for negotiations to ease and eliminate tension in Taiwan area. Obstacles could not be resolved in these talks but must be settled in conferences at high level for which our talks should and could prepare.
5.
Wang concluded saying easing tension required effort both sides. Resolution these two questions would aid greatly in easing tensions. He willing listen my views on these two and also on what should be discussed and settled under agenda item two.
Gowen
  1. Source: Department of State, Central Files, 611.93/9–1455. Confidential; Priority; Limited Distribution.