Foreign Relations of the United States, 1952–1954, East Asia and the Pacific, Volume XII, Part 2

690B.9321/12–3053: Telegram

No. 140
The Secretary of State to the Embassy in the Republic of China¹

secret
priority

Washington, January 2, 1954—1:12 p.m.

610. Your 383.² Department does not wish become involved in matter alleged debts but is willing furnish financial support Chinese Government along lines bonus originally envisaged in interest furthering evacuation. Inform Foreign Minister that providing GUB accepts proposals further evacuation Department agrees support Chinese Government within limits funds available such purpose to enable it meet requirements situation.

Stress however US can furnish funds only on basis value received. Chinese Government should assume arrangements debt settlement, through Chinese representatives Thailand if necessary, method to be approved by Joint Committee with Burmese concurrence. Bonus payments and/or individual property reimbursement should be made through Committee with payments to individuals in New Taiwan dollars.

On basis value received Department envisages $50 a head some 3000 evacuees, Chinese Government to work out breakdown between debts and individual bonuses and property reimbursement. Would seem advisable allot proportion for bonuses, example $20 a head at border or $10 a head plus $10 for weapon (latter only if Committee agrees practicable). While leaving breakdown to Chinese Government point out Jungle Generals’ demand both for liquidation debts and reimbursement personal property is in effect request double payment. Consider forces should apply approximate $85,000 value of animals to $106,000 debt in Burma as payment in kind. This would scale debt within approximate limits present estimate without prejudice individual animal owners who could be reimbursed as suggested your 367.³ If personal arms shipped Formosa owners would eventually recover or be recompensed by Chinese Government; if not, could also be reimbursed. If US funds this basis insufficient Chinese Government may wish consider use some of considerable counterpart destined this purpose which may be available. Department has asked FOA check status counterpart fund.⁴

If principles acceptable Foreign Minister request he inform Jungle Generals without delay so preparations not lag. Request their representatives proceed Bangkok soonest work out procedures with Committee.

Re figure 5000 evacuees antepenultimate paragraph your 367, ask Foreign Minister seek clarify whether meaning is 5000 new evacuees or 3000 plus 2000 already evacuated.

Dulles

1. Repeated to Rangoon and Bangkok.
2. Dated Dec. 30, 1953; the Embassy reported that the Foreign Minister had received a message from the generals in Burma that the evacuation would not begin until they received the equivalent of $250,000; the Chinese Government would handle the payments but was asking the U.S. Government to provide the money. (690B.9321/12–3053)
3. Dated Dec. 23, 1953; it transmitted a memorandum from the Foreign Ministry based on a message from the Mong Hsat leaders breaking down their request for financial assistance into component parts. (690B.9321/12–2353)
4. On Jan. 19, the Embassy in Taipei was informed that counterpart funds could be used for transportation and resettlement but not for bonuses, debts, or property compensation. (Telegram 666; 690B.9321/1–1954)