893.50 Recovery/12–3048

Memorandum by the Director of the Office of Far Eastern Affairs (Butterworth) to the Acting Secretary of State

Unless I hear from you to the contrary, I will continue to proceed on the basis that the attached memorandum accurately reflects the President’s wishes.8

Mr. Labouisse and I had a talk this afternoon with Mr. Henderson and we are meeting tomorrow morning with Mr. Cleveland.

W. W[alton] B[utterworth]
[Annex]

Memorandum by the Director of the Office of Far Eastern Affairs (Butterworth)

Memorandum for the Record

On returning from the White House this afternoon, Mr. Lovett requested that I place on record the following decisions which the President communicated to him. Mr. Clark Clifford9 was also present.

[Page 668]
1.
That this Government would continue to support through the implementation of the China Aid Act the present Chinese Government or a legal successor Government which pursues an anti-Communist policy. However, should a government come into power which comes to terms with the Chinese Communists, all aid should cease irrespective of whether the Communists are in numerical ascendancy or not.
2.
When the Chinese Communists either directly or indirectly through a coalition government take control over any area, all ECA supplies ashore or in the process of being unloaded can be distributed under conditions similar to those now prevailing. However, ECA supplies which have not yet reached such ports should be diverted elsewhere.
3.
That the military supplies under the China Aid Act should be delivered insofar as possible in accordance with the advice of our military authorities in China.
  1. Marginal notation: “OK L[ovett].”
  2. Clark M. Clifford, Special Counsel to President Truman.