893.50 Recovery/6–2848: Telegram
The Secretary of State to the Ambassador in China (Stuart)
939. Regarding time factor conclusion China agreement. Administrator required by law suspend aid if bilateral agreement not signed by July 3. Such suspension would be in form of ECA letter notifying Washington representative of receiving government. However, due to holidays, July 4 and 5, suspense action would have little practical effect on program until July 6. Re Embtel 1154, June 25,48 Washington time should control deadline signature.
If Rural Reconstruction Agreement cannot be signed priQr to or simultaneously preparation final text general bilateral, Art. V, para [Page 587] 4(a) of latter should be changed to read as follows: “expenditures required to carry out the purposes of a Joint Commission on Rural Reconstruction in China as provided for by Section 407 of the China Aid Act of 1948.”
Has Legislative Yuan passed resolution authorizing Executive Yuan negotiate necessary agreements within scope China Aid Act as indicated Embtel 1128, June 23? Embassy should, of course, request Fonmins’ authorization sign agreements general bilateral and rural reconstruction, which will take effect as from signature under then existing language.49
Dept will telegraph50 soonest authorization Ambassador sign agreements and MFN note (Embtel 1169 June 2851). However, before signature Dept should be informed outcome negotiation and final treatment changes recently transmitted Dept or initiated Nanking.
Sent Nanking as 939, repeated Shanghai as 1158.