893.50 Recovery/6–2748: Telegram
The Secretary of State to the Ambassador in China (Stuart)
938. 1. Emb authorized revert original language Article IV, (Embtel 1165 June 27) original paragraph 1 of which presumably now contained Article II. While Dept and ECA agreeable strict and detailed interpretative commitment re Article IV in annex, language used should not be similar revised text Article IV, if this approach is to meet Chinese objections (Embtel 1163 June 27), since annex would be published as integral part Agreement.
2. Dept does not insist inclusion southern Korea [in] MFN notes (Embtel 1168 June 27) if in Emb’s judgment FonMin objections reflect realistic appraisal political consequences. Suggest Emb emphasize that some ERP countries (e. g. Italy) are expected extend MFN treatment southern Korea despite lack geographic contiguity and inclusion joint recovery program. Concession this point, if necessary, might prove useful other aspects negotiation.