Foreign Relations of the United States, 1951, Korea and China, Volume VII, Part 1

895B.10/9–2251: Telegram

The Secretary of State to the Embassy in Korea

secret

Washington, September 26, 1951—6 p. m.

238. Urmsg 283 Sep 22, 271 Sep 21.¹ Fol is aide-mémoire and receipt being submitted Sep 27 to Ambassador Yang, as draft for ROK consideration.

Aide-Mémoire:

“The Secretary of State presents his compliments to His Excellency the Ambassador of the Republic of Korea and has the honor to refer to the Ambassador’s conversations with officers of the Dept of State with respect to the partial settlement by the US Govt with the ROK for Korean currency made available to US forces in Korea in accordance with the financial agreement between the US and the ROK dated July 28, 1950.

“The financial agreement of July 28, 1950 provides that settlement of any claims arising from provision and use of currency and credits under the agreement shall take place directly between the governments of the forces concerned and the Government of the ROK. Without prejudice to the settlement for other amounts of currency provided by the ROK under the terms of the financial agreement, the Govt of the US is prepared to pay at this time to the Govt of the ROK, upon execution of an appropriate receipt, the sum of $12,155,714 in settlement for W63, 051, 922, 270 which have been utilized in Korea through July 31, 1951, for direct sale to US personnel. It is believed that the examination of supplementary records may show additional amounts of won so utilized during this period, and to that extent small increments to this payment may be anticipated.

“It is the understanding of the Govt of the US that the funds tendered will upon receipt by the ROK be subject to such arrangements with respect to the utilization of the foreign exchange balances of the Govt of the ROK, as are now or may hereafter be in force pursuant to agreements between the ROK and the US Govt, the UNC or other authorities concerned with Korean relief and rehabilitation.”

Receipt:

The Govt of the ROK hereby acknowledges the receipt of $12,155,714 from the Govt of the USA in accordance with the terms of the aide-mémoire of (date) from the Secretary of State to the Ambassador of the ROK.”

No objection to public statement by ROK within terms these docs. Urinfo Wash agencies consider important payment be made in terms set forth above.²

Acheson

1. Neither printed; both messages urged swift action by the U.S. Government on the matter of settlement of won advances by the Republic of Korea to U.N. forces (895B.10/9–2251, 9–2151).
2. The draft aide-mémoire and draft receipt were presented to Ambassador Yang by Mr. McClurkin on September 27, and the Ambassador agreed to handle the details of the transfer of the funds personally (895B.10/9–2751).