893.51/4–946
Memorandum of Conversation, by the Director of the Office of Far Eastern Affairs (Vincent)
| Participants: | Dr. Wei Tao-ming, Chinese Ambassador, |
| Dr. S. C. Wang of the Chinese Embassy, | |
| Under Secretary, | |
| Mr. Vincent, FE. |
Ambassador Wei and Dr. Wang called on their own initiative. The Ambassador informed Mr. Acheson that Generalissimo Chiang and T. V. Soong desired to have some drafting changes made in the proposed press release on the credit to China and in the proposed letter from the Chinese Ambassador to Mr. Martin8 of the Export–Import Bank in regard to use of the credit. (The drafting changes suggested are shown in the attachments.9)
Following Ambassador Wei’s explanation, Mr. Acheson strongly advised him against opening up the matter by endeavoring to get agreement to these drafting changes. He pointed out that considerable effort had been exerted to arrange the credit; that the proposed drafting changes were not material to actual extension of the credit; and that he thought the Chinese Government would be well-advised to let the matter go forward on the basis of the present draft. Mr. Acheson added, however, that if the Chinese Ambassador wished to take the matter up with Mr. Clayton or the Secretary of the Treasury he was of course quite free to do so.
The Ambassador accepted Mr. Acheson’s explanation and asked at once when he thought the exchange of letters might take place. Mr. Acheson called Mr. Martin on the telephone and asked him to make appropriate arrangements with the Chinese Ambassador and Mr. Clayton.
[Page 976]In the course of the foregoing conversation Dr. Wang mentioned the Chinese Government’s desire that there be some understanding in connection with the extension of the credit which would permit greater flexibility in its utilization. He explained, not too clearly, that he had in mind utilization of the credit for the purchase of certain consumer goods in this country which would be of immediate assistance to China in its present difficulties. He was not specific as to the type of consumer goods he had in mind but explained that they might be indirectly related to approved industrial projects. (I gathered that he might have in mind the purchase immediately of certain products which it was intended would eventually be produced in China by the industrial projects approved by the Export–Import Bank—JCV.)
Mr. Acheson gave Dr. Wang a brief explanation of the principles and policies that guide the Export–Import Bank in making loans and stated that he could not pass on the question raised by Dr. Wang. He went on to say that the Export–Import Bank in examining the projects would have to reach a decision as to whether utilization of the credits in the manner suggested by Dr. Wang was in accordance with the Bank’s practices.
[(]Note to Mr. Acheson: I saw Mr. Clayton after leaving your office, explained to him the conversation that had just taken place as outlined above, and asked him whether there was any reason why the exchange of letters should not take place at an early date. He said that there were no considerations being attached to extension of the credit other than provided for in the exchange of letters and that therefore the exchange might take place without further delay—JCV.)