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ECONOMIC COOPERATION ADMINISTRATION WASHINGTON 25, D. C. CABLE ADDRESS ADECA FOR EUROPEAN RECOVERY SUPPLIED BY THE UNITED STATES OF AMERICA APR 27 1949 ECA EMBLEM CONFIDENTIAL MEMORANDUM FOR THE PRESIDENT Subject: Economic Aid to China The China Aid Act of 1948 and the related appropriation act made funds available for obligation through April 2, 1949. By Section 12 of P. L. 47, 8lst Congress, approved April 19, 1949, an amount equal to any balance unobligated under that act on April 2, 1949, or subsequently released from obligation, was made available to you for assistance in areas in China which you may deem to be not under Communist domination. In view of the critical conditions in China, it is urgently desirable that the funds made available to you by the above section be authorized for obligation and expenditure and that the flexible provisions of that section be made operative. The situation in China has, among other things, made it necessary to spend U. S. dollars in China for purposes for which local currency would normally be expended. The attached form of letter proposes that you authorize the Administrator for Economic Cooperation to administer the provisions of Section 12. The assistance is to be limited to such areas as the Secretary of State from time to time determines to be not under Communist domination. In furnishing and terminating assistance, the Administrator will act in consultation with the Secretary of State. The advance of the Chinese Communists across the Yangtze River has made it very unlikely that further aid can be provided to Shanghai. The Administrator has already diverted from China all shipments of raw cotton in the ECA program. Approsed S. May 3. 49 The Secrétary of State ARCHIVES SERVICE* RECORDS "NATIONAL AND Concurred: HSX M /M The Administrator 1or Economic Cooperation grank Paufr. DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or Director of Bureau of Budget Dep: of State letter, Aug. 9, 1923 By NLT- He 9 NARS Date 7-20-76

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    "ocrText": "ECONOMIC COOPERATION ADMINISTRATION\nWASHINGTON 25, D. C.\nCABLE ADDRESS\nADECA\nFOR EUROPEAN RECOVERY\nSUPPLIED BY THE\nUNITED STATES OF AMERICA\nAPR 27 1949\nECA EMBLEM\nCONFIDENTIAL\nMEMORANDUM FOR THE PRESIDENT\nSubject: Economic Aid to China\nThe China Aid Act of 1948 and the related appropriation\nact made funds available for obligation through April 2, 1949.\nBy Section 12 of P. L. 47, 8lst Congress, approved April 19, 1949,\nan amount equal to any balance unobligated under that act on\nApril 2, 1949, or subsequently released from obligation, was made\navailable to you for assistance in areas in China which you may\ndeem to be not under Communist domination.\nIn view of the critical conditions in China, it is\nurgently desirable that the funds made available to you by the\nabove section be authorized for obligation and expenditure and\nthat the flexible provisions of that section be made operative.\nThe situation in China has, among other things, made it necessary\nto spend U. S. dollars in China for purposes for which local\ncurrency would normally be expended.\nThe attached form of letter proposes that you authorize\nthe Administrator for Economic Cooperation to administer the\nprovisions of Section 12. The assistance is to be limited to such\nareas as the Secretary of State from time to time determines to be\nnot under Communist domination. In furnishing and terminating\nassistance, the Administrator will act in consultation with the\nSecretary of State.\nThe advance of the Chinese Communists across the Yangtze\nRiver has made it very unlikely that further aid can be provided\nto Shanghai. The Administrator has already diverted from China\nall shipments of raw cotton in the ECA program.\nApprosed\nS.\nMay 3. 49\nThe Secrétary of State\nARCHIVES SERVICE* RECORDS \"NATIONAL AND\nConcurred: HSX\nM /M\nThe Administrator 1or Economic Cooperation\ngrank Paufr.\nDECLASSIFIED\nE. O. 11652, Sec. 3(E) and 5(D) or\nDirector of Bureau of Budget\nDep: of State letter, Aug. 9, 1923\nBy NLT- He 9 NARS Date 7-20-76"
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