893.48/11–244
The Ambassador in China (Gauss) to the Secretary of State
[Received November 23.]
Sir: I have the honor to refer to the Department’s airgram A–212, September 28, 1944 in regard to regulations approved September 12 by the Executive Yuan governing the administration of funds and materials contributed to free China by foreign countries, and to enclose a copy of an article4 on this subject which appeared in the September 19 issue of the China Information Committee Daily Bulletin, a publication of the (Party) Ministry of Information.
Dr. O. K. Yui, Political Vice Minister of Finance, on October 31, 1944 stated to an officer of the Embassy that the information contained in this article was correct and that the primary objective sought in the regulations was the establishment of a central organization to receive and dispose of funds and materials from abroad not designated by the donors to any specific Chinese agency. He said that the regulations would not affect the transfer of funds and materials by American organizations to their established connections in China. Dr. Yui stated that the regulations had been drawn up to prevent certain irregularities in the soliciting of funds from abroad by Chinese organizations and in their utilization here. He said that in the past some Chinese organizations had directed appeals for funds and materials abroad without the knowledge of the Chinese Government and that these appeals resulted in requests from abroad for information regarding the organizations which made the appeals. In some cases, Dr. Yui stated, it was found that certain Chinese organizations had made appeals for funds for specific work when they had already been provided with the necessary funds by the Chinese Government. Another [Page 187] irregularity which the new regulations would correct, Dr. Yui said, was the fact that certain Chinese organizations which in the past received funds direct from abroad were not required to give an accounting regarding the use of the funds received.
Dr. C. Bertram Rappe, local treasurer for nine American missionary and relief organizations, stated to an officer of the Embassy on October 31, 1944 that the regulations had been discussed, prior to their enforcement, by officials of the Finance Ministry with American and other foreign representatives of missionary and relief organizations and that approval had been voiced by these representatives. Dr. Rappe said that since the enforcement of the regulations there had been no change or delay in transfer of funds from abroad to China and that the regulations assumably would not affect such transfer of funds and materials between foreign organizations and their established connections in China.
Respectfully yours,
- Not reprinted.↩