893.01A/167
The Ambassador in China (Gauss) to the Secretary of State
[Received July 7.]
Sir: I have the honor to transmit herewith a copy of a memorandum on “Possible American Aid to China”3 prepared by Dr. J. Lossing Buck of the Department of Agricultural Economics at the University of Nanking which is now located at Chengtu.
Several weeks ago Dr. Buck discussed his suggestions of American technical assistance in China with an officer of this Embassy and stressed the necessity for such aid at the present time. In his opinion the request for advisers should come from the Chinese Government and care should be taken that the impression is not given that the United States is thrusting these experts on groups where they are not welcome. In order that the Chinese be made aware that the United States is willing to send advisers to China Dr. Buck suggested that a list of capable persons available to serve in advisory capacities be prepared and submitted to the Chinese Government at some opportune time.
It is understood from Dr. Buck that copies of the enclosed memorandum were given to the Generalissimo, the Minister of Finance, the Minister for Economic Affairs, the Minister of Communications [Page 665] and the Minister of Education. A copy was also given to Dr. Lauchlin Currie during his visit to Chungking last February.
The question of foreign advisers has been mentioned frequently by various officials and on several occasions they have made it clear that in their opinions American advisers, especially for economic and financial matters, are badly needed. After discussing China’s economic and financial questions with various bankers and members of the government during the past several months there seems to be a general opinion among all parties concerned that the country’s financial and economic leaders are experiencing difficulties in formulating policies that will solve the increasing problems now arising. Foreign loans undoubtedly have strengthened Chinese resistance but the task now confronting the country is how to use these loans in order to obtain the maximum results and it is in this undertaking that some officials feel the need of American advisers.
Respectfully yours,
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