212. Telegram 753 from Geneva1

[Facsimile Page 1]

753. From Johnson.

1.
Re para 9 Deptel 745. Following appear to be some of considerations to be taken into account with respect listing restitution seized diplomatic and consular property:
A.
Listing item will inevitably be interpreted by CHICOMS and others as possibly remote but nevertheless definite step in contemplation eventual recognition. From narrow standpoint continuation these talks and release Americans this would be useful. Principal adverse factor to be considered is effect in Taiwan.
B.
What legal aspects may be; that is, can matter be handled without sacrifice our position on GRC as de jure government of China?
C.
CHICOMS may counter with item on release blocked accounts in US.
D.
CHICOMS may alternatively counter with position this not “practical matter” unless and until recognition contemplated at which time “will be easy to resolve”.
E.
In unlikely event properties restored this would lead directly to question UK representation US interests in PRC and reciprocal representation PRC interests in US by GOI.
F.
Have imperfect recollection concerning our returning title to GRC properties acquired under surplus property [Facsimile Page 2] agreement following World War II. Am not clear what effect this would have on extent restitution demand we would make on CHICOMS.
Shillock
  1. Source: Department of State, Central Files, 611.93/9–2155. Confidential; Limited Distribution.