711.94/2327

Memorandum by the Chief of the Division of Far Eastern Affairs (Hamilton) to the Under Secretary of State (Welles)

Mr. Welles: Reference your memorandum of conversation of September 23 with Sir Ronald Campbell in regard to the question of designating an American official to collaborate with Sir Otto Niemeyer.

It is FE’s1 understanding that Sir Ronald, following his discussion of the subject under reference with senior officers of the Department, recently approached Dr. Lauchlin Currie who informed Sir Ronald to the effect that Mr. Fox, who is already in China, is more than amply qualified to cover the field in question; that the appointment of another official would result in at least partial duplication of endeavor [Page 732] and might reflect adversely on the standing of Mr. Fox; and that because of these and other considerations he (Dr. Currie) did not deem either necessary or advisable the appointment of any additional official to collaborate with Sir Otto Niemeyer. In this connection it is FE’s understanding that Mr. H. Merle Cochran of the Treasury Department is scheduled to depart from San Francisco on September 28 on the same plane on which Sir Otto Niemeyer is traveling; that Mr. Cochran will upon arrival in China collaborate with Mr. Fox; and that the question of possible collaboration with Sir Otto by Mr. Cochran, as assistant to Mr. Fox, is under consideration by Mr. Dean Acheson and by the Treasury Department.

FE fails to perceive any valid basis for Sir Ronald’s contention that failure to appoint an official in addition to Mr. Fox would create in China the impression that the United States and the British Governments are not cooperating fully in the field of assistance to China.

With reference to the other factors involved in the general subject under discussion, FE and EA2 have from time to time as the question has arisen given consideration to the proposed sending to China of an American economic mission. The conclusion tentatively reached by FE, and it is believed by EA, is that the factors for and against such a proposal are very nearly in balance. FE therefore suggests that the procedure as it has been developed to date—the latest development being the departure for China of Mr. Cochran—might advisedly be allowed to continue for the present.3

M[axwell] M. H[amilton]
  1. Division of Far Eastern Affairs.
  2. Office of the Adviser on International Economic Affairs.
  3. The Assistant Secretary of State (Acheson) wrote the Under Secretary of State that he concurred in Mr. Hamilton’s views and added: “It was my understanding that Mr. Cochran’s visit was talked over with Sir Otto & was an acceptable substitute for his earlier request which Sir Ronald Campbell repeated to you.”