Foreign Relations of the United States, 1948, The Far East: China, Volume VIII

893.50 Recovery/12–2748: Telegram

The Ambassador in China (Stuart) to the Secretary of State

Nanking, December 27, 1948—5 p.m.
[Received December 28—7:38 a.m.]

2627. Shanghai’s 2128, December 20⁴ refers to request by Kailan Mining Administration for ECA reconstruction funds despite Communist occupation of mines. Implicit in Embassy’s views (reference Embtel 2414, December 4) is that denial capital goods to Communists is even more important than consumer’s goods. We assume Hoffman’s Washington statement⁵ regarding suspension reconstruction program covers this point.

Sent Department, repeated Shanghai 1314 for Lapham.

Stuart

4. To the Ambassador in China; not found in Department files.
5. On December 21.