794A.5 MAP/6–2251: Telegram
The Secretary of State to the Embassy in the Republic of China 1
1389. Toisa. Uncontrolled and unplanned character of Chi mil expenditures on Formosa is serious obstacle to accomplishment those econ polit and def objectives on Formosa which it is common desire of National Govt of China and US Govt to achieve. It is probably inevitable that mil estab must impose heavy burden on national budget. It is not necessary however that this charge on Formosan resources be so unpredictable in terms of social and econ consequences it produces as to render sound econ planning almost if not completely impossible and impair the defensive capability of the island which it is the intent of the mil assistance program to develop.
In view of above, State, ECA and Defense are urgently considering desirability and feasibility of your presenting aide-mémoire along fol lines to Generalissimo at earliest appropriate time in order assure attainment of objectives of our enlarged aid programs in Formosa. Anxious obtain soonest joint or individual views yourself, Chase and Moyer draft aide-mémoire for our consideration.
Aide-mémoire as follows:
“The US Government is engaged currently in developing programs of econ and mil assistance for Formosa and other areas in the Far East. The US Government cannot however go forward with prospect of successful implementation of the program for Formosa without assurances that the National Government of China will cooperate effectively in bringing its mil and civilian expenditures on the island under planned control. Therefore the US Government requests as a matter of urgency that the National Government of China formulate and propose for urgent consideration by and discussion with representatives of the Government of the United States some practical [Page 1716] method whereby competent American authority may exercise, jointly with responsible Chinese military and civil officials effective supervision over budgeting and expenditure of Formosan resources and funds for support of the military establishment and civilian economy of the National Government of China. Efficient implementation of United States econ and mil assistance programs for Formosa depends, we believe, upon promptly working out the arrangements referred to above; they are a precondition for efficient application of those maximum efforts which are required to achieve a healthy economic, social and political environment on Formosa and the capability for successful military defense.”
- A draft telegram, similar in substance and incorporating an identical draft aide-mémoire, was sent to Secretary Acheson with a covering memorandum of June 13 from Rusk to McWilliams: the covering memorandum bears the notation “OK DA” in Acheson’s handwriting (794A.5 MSP/5–851).↩