893.51/9–1646: Telegram
The Acting Secretary of State to the Ambassador in China (Stuart)
758. For General Marshall. Dr. Wang, Chairman Chinese Supply Comm[ission], recently approached Dept urging arrangement under which Eximbank would carry out discussions Chinese representatives re specific projects for which credits are or may be desired.
Following Deptel 518, July 26, and Urtel 1235, July 31, Eximbank informed Wang consideration could not now be given projects referred to therein. Wang suggested Chinese be allowed present supporting data, including written and oral statements [of] consulting eng[inee]rs who examined projects, and discuss problems with Bank on technical level. He further urged Board of Directors then pass on projects, deferring signature [of] loan contract until political situation is clarified. His argument for both suggestions is that procedure would save substantial time ordinarily consumed negotiation such credits.
Dept representative informed Wang suggestions would be considered, but indicated grave doubts whether Bank would agree to more than discussions at working level; Bank’s board could not appropriately take action even though deferring signature. No indication was or could appropriately have been given re Bank’s willingness to sanction working level discussions only.
[Page 1008]Although recognizing that working level discussions would expedite later clearance of credits for particular projects, Dept believes that conduct of these discussions at this time would imply commitments possibly prejudicial to your efforts and inconsistent with the views expressed by you in Urtel 1235 of July 31. Request your comment on the Dept’s view outlined above.