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342
BOARD OF ECONOMIC WARFARE
OFFICE OF EXECUTIVE DIRECTOR
&
OF STATE
ASHINGTON, D.C.
file
MAR 2 0 1943
MAR 9 1943
MR ACHESON 2.
Mr. Dean Acheson "
Assistant
and
Dear Dean:
Thank you for the preliminary draft of the Chinese Reciprocal Aid
Agreement and draft acknowledgment by the Secretary of State.
We have a few comments and suggestions.
I assume that in this exchange of notes, as in the previous exchanges
of similar notes, it is the intention of the State Department to deal
only with military reciprocal aid, and not to deal with other possible
types of aid, such as imports of raw materials or commodities from the
foreign country. It is likewise my understanding that your Department
does not intend to give the foreign government, or the public generally,
the impression that military reciprocal aid is the only type of recipro-
cal aid which may be received by the United States in the course of the
war. In view of this, I suggest that there be included in the agreement
some language which will clearly suggest that the agreement deals only
24
with certain types of reciprocal aid. For instance, on page 1 of the
preliminary draft (sixth line from the bottom of the page), the language
might read: "Procedures applicable to the provision of certain kinds
of aid by the Government of China,' instead of "Procedures applicable
to the provision of aid... thus making it clearer that reciprocal aid
in the form of raw materials or commodities may be provided for at a
later date.
We understand that the clauses relating to the provision of Chinese
currency are intended to apply only to members of the U.S. armed ser-
vices and other U.S. officials in China. We further understand that
both the Republic of China and certain departments of our own Govern-
ment are anxious to find a way of augmenting the purchasing power of
"NATIONAL
our troops and our officials whose pay is inadequate because of the
ARCHIVES
RECORDS
high prices in China and the official exchange rate. Nevertheless,
SERVICE**
I doubt the wisdom of promulgating an exchange of notes which requests
China to pay their currency to us as reciprocal aid. This is a
precedent, and in view of the widespread impression in Congress
and outside that Lend-Lease aid to China has been inadequate, I thir
Ren
that China should not be the first country of whom we ask a return inno
money.
This provision also runs counter to a sound policy which has been laid
down in military reciprocal aid agreements with other countries. We
have hitherto not asked any country to contribute as reciprocal aid to
Pasts .345.
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"ocrText": "59-\n342\nBOARD OF ECONOMIC WARFARE\nOFFICE OF EXECUTIVE DIRECTOR\n&\nOF STATE\nASHINGTON, D.C.\nfile\nMAR 2 0 1943\nMAR 9 1943\nMR ACHESON 2.\nMr. Dean Acheson \"\nAssistant\nand\nDear Dean:\nThank you for the preliminary draft of the Chinese Reciprocal Aid\nAgreement and draft acknowledgment by the Secretary of State.\nWe have a few comments and suggestions.\nI assume that in this exchange of notes, as in the previous exchanges\nof similar notes, it is the intention of the State Department to deal\nonly with military reciprocal aid, and not to deal with other possible\ntypes of aid, such as imports of raw materials or commodities from the\nforeign country. It is likewise my understanding that your Department\ndoes not intend to give the foreign government, or the public generally,\nthe impression that military reciprocal aid is the only type of recipro-\ncal aid which may be received by the United States in the course of the\nwar. In view of this, I suggest that there be included in the agreement\nsome language which will clearly suggest that the agreement deals only\n24\nwith certain types of reciprocal aid. For instance, on page 1 of the\npreliminary draft (sixth line from the bottom of the page), the language\nmight read: \"Procedures applicable to the provision of certain kinds\nof aid by the Government of China,' instead of \"Procedures applicable\nto the provision of aid... thus making it clearer that reciprocal aid\nin the form of raw materials or commodities may be provided for at a\nlater date.\nWe understand that the clauses relating to the provision of Chinese\ncurrency are intended to apply only to members of the U.S. armed ser-\nvices and other U.S. officials in China. We further understand that\nboth the Republic of China and certain departments of our own Govern-\nment are anxious to find a way of augmenting the purchasing power of\n\"NATIONAL\nour troops and our officials whose pay is inadequate because of the\nARCHIVES\nRECORDS\nhigh prices in China and the official exchange rate. Nevertheless,\nSERVICE**\nI doubt the wisdom of promulgating an exchange of notes which requests\nChina to pay their currency to us as reciprocal aid. This is a\nprecedent, and in view of the widespread impression in Congress\nand outside that Lend-Lease aid to China has been inadequate, I thir\nRen\nthat China should not be the first country of whom we ask a return inno\nmoney.\nThis provision also runs counter to a sound policy which has been laid\ndown in military reciprocal aid agreements with other countries. We\nhave hitherto not asked any country to contribute as reciprocal aid to\nPasts .345."
}