Foreign Relations of the United States, 1947, The Far East: China, Volume VII

893.51/11–2447

The Chinese Embassy to the Department of State ⁷⁵

Memorandum

• “1. The Chinese Government welcomes the statement of the Secretary of State that the United States Government should extend economic and financial aid to China and that a definite proposal is under consideration for early action.⁷⁶ Such aid is, indeed, essential to China and is to avoid financial and economic breakdown and to achieve stability.
• “2. The Secretary of State in his conversation with the Chinese Ambassador on November 13, 1947, indicated tentatively that the United States aid to China might be of the order of US$300,000,000 of which US$60,000,000 might be available from April 1, 1948, and that he hoped that definite proposals would be ready for submission to the Congress for its consideration next January. The prospect of such aid is gratifying, but the most recent data show that the financial situation has become so critical that emergency aid is immediately needed, and that such aid cannot be delayed until next April. These data were informally supplied to the United States Government through its Embassy in Nanking on November 18th.⁷⁷ The Central Government therefore earnestly hopes that, pending the working out of a comprehensive program as mentioned below, the United States Government may find it possible to provide by action of the Congress interim emergency aid to cover the deficit in China’s international balance of payments at the rate of at least US$25,000,000 monthly beginning from January 1948.
• “3. The Chinese Government fully recognizes that, in order to deal with the present and prospective situations in China, a comprehensive and carefully prepared program is needed in which external aid and internal measures of self-help are to be closely integrated. The immediate need for emergency aid and action is to check inflation and prevent a breakdown. But it is also clear that the time has come for China to embark upon a program of fundamental internal reform. The program should cover currency and banking, public revenues and expenditures, armed forces, foreign trade, land policy and rural conditions, rehabilitation of essential industries and communications, and administrative methods. As a result of China’s sufferings and losses during eight years of war and the subsequent Communist rebellion, China cannot carry out such a program unaided. The Chinese Government, therefore, in keeping with the long history of Chinese-American friendship and cooperation, hopes that it may count upon the material and technical assistance of the United States in carrying out this program.
• “4. For the purpose of discussing interim emergency aid and devising a plan for further action along the line indicated above, the Chinese Government would be prepared to send to Washington a small technical mission, or to receive in Nanking a mission from the United States Government. The Chinese Government would appreciate an early reply from the United States Government concerning the views as indicated above.”

Nanking, November 21, 1947.

Washington, November 24, 1947.

75. Handed to James K. Penfield, Deputy Director of the Office of Far Eastern Affairs, by Dr. Shao-Hwa Tan, Chinese Minister Plenipotentiary.
76. See footnote 62, p. 1212.
77. See telegram No. 2258, p. 1219.