893.30/11–2947: Telegram
The Ambassador in China (Stuart) to the Secretary of State
[Received November 29—8:54 a.m.]
2317. Foreign Minister now asks that proposed exchange of letters to be signed at time of signing agreement re transfer of naval vessels on December 8, 1947 be in the form of exchange of formal notes attached to agreement. Draft text of Embassy’s note approved by Foreign Office follows:
“I have the honor to refer to the ‘agreement between the Government of the U. S. of America and the Government of the Republic of China concerning the transfer of naval vessels and equipment pursuant [Page 984] to U. S. Public Law 512—Seventy-ninth Congress of the U. S. of America’ signed today and, in particular, to that sentence in article 2 of the agreement which reads ‘from and after the delivery of said vessels, the Government of the Republic of China shall hold harmless and indemnify the Government of the United States of America, its officers, agents, servants and employees, against any and all claims, demands, losses, damages, expenses, and costs, regardless of the nature thereof, of every kind and character, whether arising out of contract or in tort, arising out of or connected with the transfer of such property or the use and operation thereof by the Government of the Republic of China.[’] It is understood that the claims, demands, losses, damages, expenses, and costs, regardless of the nature thereof, of every kind and character, whether arising out of contract or in tort for which the Chinese Government assumes full responsibility, are limited to those which arise from and after the delivery of the vessels and out of or connected with the transfer of the property of [or] the use and operation of it by the Republic of China.
With reference to the concluding sentence of article 2 of the agreement, I am authorized to inform you that the possible claim of the Aktiebolaget Bofors which may arise out of the transfer to the Government of the Republic of China of Bofors guns is the only claim of this nature of which the United States Navy Department is aware.
Please accept, Excellency, the renewed assurances of my highest consideration.”
Text of draft reply of Foreign Office will be transmitted by telegram as soon as received for inclusion in Department press release. Please inform Embassy urgently by telegram whether foregoing arrangement has Department’s approval.
If Department decides accede Foreign Ministry request that assurances be given re purchase ammunition, (Embtel 2298, November 26), Embassy suggests Department draft additional paragraph above quoted note and transmit text to Embassy by urgent telegram.