Foreign Relations of the United States, 1946, The Far East: China, Volume X

Marshall Mission Files, Lot 54–D270

Memorandum by the President of the Chinese Executive Yuan (Soong) to General Marshall ⁶⁷

undated

During the war numerous agencies were established for close collaboration in the economic sphere between the United States and China. These wartime instruments largely fulfilled their purpose; but there is great need for continuing cooperation between the two nations along the lines of economic reconstruction and development of China and of the Far East generally. A healthy growth of the complementary economies of the East Asian countries is a fundamental objective of both the United States and China; it is a prerequisite to any lasting peace and stability in this area, to the stabilization and long-term development of China and to the successful democratic reorientation of Japan. It is important to the achievement of this common purpose that the plans of the two Governments should be closely coordinated and that mutual problems should be clearly understood. It is also important that, insofar as possible, these be worked out jointly, and without undue delay.

In order to establish this essential cooperation in the most effective and fruitful manner, the Chinese Government suggests that informal and confidential discussions should be opened immediately in Washington to define further the joint aims of the two Governments and recommend appropriate machinery to carry them out. It is suggested that each Government appoint a representative, to be assisted by a few technical aides.

Among the objectives to which the Chinese Government attaches great importance, and which it suggests should be carefully explored in these discussions, are the following:

1. The general shape of a complementary economic development of the East Asian countries—especially including China, Japan, Korea, the Philippines and Southeast Asia—along lines which will permit maximum trade among them and with the rest of the world; and the policies which may be jointly defined to reach this objective.

2. Interim arrangements to promote the production and exchange of needed consumer goods in the Far East during the present abnormal period.

3. Establishment of agencies for joint planning of long and short term use and development of China’s natural resources, factories, communications and other economic facilities; this will eventually require cooperative action to define the technical and material requirements of such a program, propose means of public or private, foreign or domestic financing, develop practical arrangements for the absorption and use of reparations and other sources of capital equipment, formulate programs to obtain necessary technical and managerial assistance.

4. Development of measures to aid in the restoration of private industrial production in China through a national reconstruction authority which would provide technical and financial assistance on an emergency basis.

The matters of great mutual interest to the United States and China cover a wide range, and the discussions here proposed may be expected to cover them only in the most general terms. The aim of these discussions, however, should be to lay the groundwork for more extensive and detailed coordination of the economic policies and measures of the two countries toward achievement of their mutual purposes. The confidential nature of the meetings will permit the freest exchange of views.

T. V. Soong

67. Copy discussed November 18 by General Marshall with Mr. Butterworth, date not indicated. Original forwarded to the Department of State by the War Department on December 4, 1946.