794A.5 MAP/6–3051: Telegram
The Secretary of State to the Embassy in the Republic of China
42. Toisa. Revised aide-mémoire contained urtel 1803 Jun 30 accepted. Text aide-mémoire, with further excision from original draft of certain phrases no longer considered necessary, now reads:
“The US Govt is engaged currently in developing programs of economic and military assistance for Formosa and other areas of the Far East. The US Govt cannot, however, go forward with the prospect of successful implementation of the program for Formosa without assurances that the Govt of China will cooperate effectively in bringing its military and civilian expenditures on the island under planned control. Therefore, the US Govt requests as a matter of urgency that the Govt of China formulate and propose for urgent consideration by, and discussion with, representatives of the Govt of the US some practical procedure to accomplish this purpose. Such procedure would assure that effective supervision and control is exercised continuously over budgeting and expenditure of resources and funds available to the National Govt of China and to all divisions of govt, Provincial and Local, for support of the military establishment and civilian economy. Efficient implementation of United States economic and military assistance programs depends upon working out the arrangements referred to above.”
Aide-mémoire shld be presented by you to Generalissimo himself at earliest opportunity. In ur discretion, you may request Chase and Moyer to accompany you.1
In adopting present text aide-mémoire State, Def and ECA have accepted ur judgment, numbered para 4 ureftel, in which Chase and Moyer have concurred, that present text will accomplish objectives Deptel 1389 Jun 22 as effectively as in original draft. We assume no action will be undertaken to implement policy guidance in Ecato 611 Jun 30 if such action anticipates or is inconsistent with having Chi [Page 1751] Govt itself propose satisfactory techniques accomplish objectives Deptel 1389.
Def and ECA concur.2
- Telegram 92 from Taipei, July 20, 1951, not printed, reported that Rankin, accompanied by Chase and Moyer, had given the Department’s text to the Generalissimo that morning; a copy had also been sent to the Chinese Foreign Office (794A.5 MAP/7–2051).↩
- An interim reply was received from the Chinese Foreign Office in a note dated August 13, 1951, in which the Chinese Government assured the U.S. Government of its readiness to cooperate in full in the implementation of U.S. economic and military assistance programs. The note stated that a Special Committee of Cabinet level, headed by the Deputy Premier, had been appointed on July 25, 1951, to study ways and means of reducing the budget deficit and bringing military and civilian expenditures under planned control; it was expected soon to draw up concrete measures for consideration by the Chinese Government. U.S. representatives in Taiwan would be kept informed of the Committee’s progress, it was stated, and their advice would be sought. The note was summarized in telegram 212 from Taipei, August 15, 1951 (794A.5 MAP/8–1351); the text was sent to the Department in despatch 74 from Taipei, August 15, 1951 (793.5 MAP/8–1551).↩