Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador V. K. Wellington Koo of China, and O. Edmund Clubb

0016845 a DEPARTMENT OF STATE Memorandum of Conversation 31 MA DATE: August 31, 1950 SUBJECT: Observations of Ambassador V. K. Wellington Koo deriving from his trip to Taipei 248 PARTICIPANTS: The Secretary Ambassador V. K. Wellington Koo Mr. 0. Edmund Clubb, CA is E a ARCHIVES *NATIONAL SERVIGE" RECORDS AND COPIES TO: S FE U CA EUR AmEmbassy, Taipei UNA AmEmbassy, London u. s. GOVERNMENT PRINTING OFFICE 16-61120-1 Ambassador Koo referred to his recent return from a trip to Taipei and said that in general he had been much encouraged by what he saw. He had observed much reform accomplished in respect to both military and financial matters. He had made a trip around Formosa for the particular purpose of observing the military establish- ments and state of administration and of conversing with Formosan people. Ambassador Koo said that he had been present at a reception attended only by Formosans and had conversed freely with them. He found that determination existed among them to do more still along the lines of reform. Much had already been achieved; more still would be done. Ambassador Koo reported that he found treatment of the Army to have improved, with rations, for instance, better. The financial position of the Government like- wise was better. Where in December of last year there was an 81 percent deficit in the budget, now there was only a 19 percent deficiency. In short, the percentages had been exactly reversed. With new sources of income it was hoped to be able roughly to balance the budget by the DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- NC NARS, Date 10-20-10