794A.5 MAP/10–1751: Telegram
The Secretary of State to the Embassy in the Republic of China
351. Rankin, Chase, Moyer from State, Defense, ECA.
Re 495 Oct 13 and 504 Oct 17. Min shld be appropriately notified US Govt encouraged by gen scope and nature arrangements described MinFonAff reply Oct 12 and prepared to offer its own full coop and assistance in accomplishing desired budget and financial controls. Shld emphasize that US part is to help Chi achieve vital objectives they have set for themselves.
State-Defense-ECA agree that publicity re arrangements undesirable this stage.
However, in view magnitude US aid, determination both exec and legislative branches US Govt that aid efficiently used, and recognition Generalissimo’s paramount influence on Formosa, it is necessary that US obtain from Generalissimo personal assurance that he is familiar with and fully supports these arrangements. Such assurance may have great future utility and is important for record. Washington requests Rankin’s judgment re best method for obtaining it. Possible method wld be for Rankin to convey report to Generalissimo that US Govt will follow with interest and sympathy working out of arrangements and will be glad to know that Generalissimo shares our desire for their full success and then present Generalissimo with aide-mémoire or memo of conversation on mtg.
For your own info assumed here that as MAAG consults and collaborates with MND re Chi mili budget it will maintain continuous contact ECA Mission re mili budget, impact costs, and other related problems arising from burden mili estab on Formosan econ. [State, Defense, ECA.]