Matthews files, lot 53 D 413: Telegram
The Commander in Chief, United Nations Command (Clark) to the Joint Chiefs of Staff
secret
priority
priority
Tokyo, February 23, 1953—4:49
p.m.
C 61314. Subj is Interim Report Current Status ROK Financial Negot.
- 1.
- On 21 Feb Pres Rhee accepted proposed UNC note drafted along lines previous msgs. Agmt apparently reached settlement $82,800,000 for United States oblig prior to 16 Dec 52. This figure rep compromise to our initial offer of $79,739,187.88. Rhee directed Paik verbally in presence my rep to accept UNC proposal. Conversations with Paik on 22 Feb proceeded satis. Believe solution can be reached on escalator clause. No apparent objection use of Pusan wholesale price index to determine initial mil conversion rate and for subsequent periodic adjustments; initial rate calculation will be keyed to Pusan wholesale price index-mil conversion rate relationship of Apr 51. Ques of drawings heretofore made subsequent to 16 Dec unsettled at this point in negot.
- 2.
- Paik proposed that formal agmt be signed 25 Feb. UNC proposes to make the 25 Feb agmt effective 26 Feb in order to convenience our funding and finance people by avoiding a split day.
- 3.
- New subj: Indications Paik will present draft of new law to assembly near future for rationing of essentials. Apparently ROK Govt gaining confidence.
- 4.
- Further info of significance will be forwarded as avail.