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dele 155 -
bargain as well as this particular problem. It is very
much like the old technique of buying curios in Peking.
There is some one thing that you particularly want, the
dealer knows you want it and he puts on it a price higher
than you are willing to pay. The way you get it is to
buy not only that thing but a number of other things, then
you make a lump price and he cuts his price somewhat and
you come up somewhat; eventually you get what you really
want and he gets what he really wants for that main object,
but neither person has lost face.
Couldn't we couple recognizing the new regime in China
with a number of positive steps in Asia as a whole, showing
American initiative and desire to get things done in the
improvement of various situations, such as those in
Indochina and Indonesia, possibly Burma, whatever we can
do in India and Pakistan, to show that the United States
is not against changes in the status quo as such, but on
the contrary is anzious to get the most progressive and
liberal settlement possible, and that the United States
stops short of wanting to aid or encourage the development
of Communism but is eager to promote alternatives which are
acceptable to the maximum number of people in Asia and
Europe? If we. could handle the question of China in that
wider context of an active American policy elsewhere in
Asia, it seens to me that we could do a great deal to
retrieve the prestige situation and consolidate the ac-
tual power situation.
MR. HEROD: The statement was made that, independent
of recognition, trade could go on. That statement is
probably correct. On the other hand, I don't think that
this group wants to minimize that without recognition the
effort which will be exerted by American traders will be
fraught with additional uncertainties as a result of which
trade will not be as great, and certainly there will be
less credit, less investment and more uncertainty from the
trader standpoint as to what the American attitude will be,
what with export licenses and the ability of the American
Government to prevent your shipping for some reason. That
they will pull out due to the political situation domesti -
cally is a factor at the present time.
= ARCHIVES SERVICE* UNATIONAL RECORDS
AND
MR. ROBERTSON: I'd like to associate myself with
Mr. Herod in this question of recognition. I agree that
the question of timing is of the utmost importance.
Dr. Fairbank said yesterday that he thought the value of
direct contacts with people who had been in these parts
would be of Interest and value to the committee. We have
in China, as our chief executive, a man named Paul Hopkins,
who is known, I think, to a good many of the people here.
He
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"ocrText": "dele 155 -\nbargain as well as this particular problem. It is very\nmuch like the old technique of buying curios in Peking.\nThere is some one thing that you particularly want, the\ndealer knows you want it and he puts on it a price higher\nthan you are willing to pay. The way you get it is to\nbuy not only that thing but a number of other things, then\nyou make a lump price and he cuts his price somewhat and\nyou come up somewhat; eventually you get what you really\nwant and he gets what he really wants for that main object,\nbut neither person has lost face.\nCouldn't we couple recognizing the new regime in China\nwith a number of positive steps in Asia as a whole, showing\nAmerican initiative and desire to get things done in the\nimprovement of various situations, such as those in\nIndochina and Indonesia, possibly Burma, whatever we can\ndo in India and Pakistan, to show that the United States\nis not against changes in the status quo as such, but on\nthe contrary is anzious to get the most progressive and\nliberal settlement possible, and that the United States\nstops short of wanting to aid or encourage the development\nof Communism but is eager to promote alternatives which are\nacceptable to the maximum number of people in Asia and\nEurope? If we. could handle the question of China in that\nwider context of an active American policy elsewhere in\nAsia, it seens to me that we could do a great deal to\nretrieve the prestige situation and consolidate the ac-\ntual power situation.\nMR. HEROD: The statement was made that, independent\nof recognition, trade could go on. That statement is\nprobably correct. On the other hand, I don't think that\nthis group wants to minimize that without recognition the\neffort which will be exerted by American traders will be\nfraught with additional uncertainties as a result of which\ntrade will not be as great, and certainly there will be\nless credit, less investment and more uncertainty from the\ntrader standpoint as to what the American attitude will be,\nwhat with export licenses and the ability of the American\nGovernment to prevent your shipping for some reason. That\nthey will pull out due to the political situation domesti -\ncally is a factor at the present time.\n= ARCHIVES SERVICE* UNATIONAL RECORDS\nAND\nMR. ROBERTSON: I'd like to associate myself with\nMr. Herod in this question of recognition. I agree that\nthe question of timing is of the utmost importance.\nDr. Fairbank said yesterday that he thought the value of\ndirect contacts with people who had been in these parts\nwould be of Interest and value to the committee. We have\nin China, as our chief executive, a man named Paul Hopkins,\nwho is known, I think, to a good many of the people here.\nHe"
}