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Telegram from Edwin A. Locke, Jr. to President Harry S. Truman

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NLT-407 SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE ASTERISK (*) MAILGRAM ADDRESSEE 1 FROM EDWIN A LOCKE JR PRIORITY 2 3 RELEASED BY ROUTINE 25 NOV 1945 HARRY ARCHIVES S. "NATIONAL RECORDS AND DATE FOR ACTION THE PRESIDENT 4 DEFERRED 5 SERVICE" BASEGRAM 6 U.S. GOVERNMENT DECLASSIFIED by authority of DEPT. OF COMMERCE LTR 7 TOR CODEROOM 0909 TO NARD 11-15-12 8 MEMO TO NLT FROM DECODED BY BECKMAN PRIORITY 9 PARAPHRASED WOODWARD CHECKED BY BY INFORMATION NL 4-12-73 10 SJOSTEN Initials BKZ Date 5/21/14 ROUTINE 11 DEFERRED 12 WOODWARD DITTOED ROUTED BY BY SJOSTEN BASEGRAM 13 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFERRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 PAGE 1 OF 9 241420 NCR 1568 CHECK BELOW 16 17 18 Originator till in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 TOP SECRET. FOR PRESIDENT'S EYES ONLY FROM EDWIN A LOCKE VIA 22 ALUSNA CHUNGKING. 23 24 25 26 THIS INTENDED MY FINAL CABLE TOYYOU BEFORE DEPARTURE FROM CHINA. 27 SINCE MY NOVEMBER 5 CABLE HAVE HAD FURTHER CONFERENCES WITH 28 29 GENERALISSIMO CHIANG KAI SHEK PREMIER T V SOONG AND VICE PREMIER 30 WONG WEN HAO AND HAVE COMPLETED 8 DAY VISIT NORTH CHINA. THIS 31 32 TRIP REVEALED ADDITIONAL EVIDENCE CHINESE PEOPLE ACUTELY 33 DISTURBED BY ECONOMIC CONDITIONS AND RAPIDLY LOSING CONFIDENCE 34 35 IN CENTRAL GOVERNMENT THOUGH RETAINING FAITH IN GENERALISSIMO 36 PERSONALLY. I RETURNED WITH STRONG CONVICTION THERE CANNOT BE 37 38 MUCH BASIS FOR PRACTICAL AMERICAN ECONOMIC COOPERATION WITH 39 40 CHINA UNTIL CHINA HERSELF BEGINS TO SOLVE HER INTERNAL ECONOMIC 41 42 PROBLEMS. WITH THIS IN MIND SUGGESTED TO GENERALISSIMO THAT CHINA TAKE FRESH AND VIGOROUS ACTION ALLEVIATE ECONOMIC STRESS 43 44 AND INITIATE SOUND PROGRAM ECONOMIC RECONSTRUCTION AND DEVELOP- 45 46 MENT AND THAT HE PERSONALLY IDENTIFY HIMSELF WITH SUCH ACTION. 47 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-1 OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" instructions contained in Article 76, Navy Regulations. COPY NO. 241420 OPNAV 19-78 T SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE ASTERISK (*) MAILGRAM ADDRESSEE EDWIN A LOCKE 1 FROM PRIORITY 2 3 ROUTINE RELEASED BY 4 DATE MARAY U.S. ARCHIVES SERVICE" 'NATIONAL RECORDS TRUMAN AND FIBRARY FOR ACTION DEFERRED THE PRESIDENT 5 BASEGRAM 6 DECLASSINED by authority of 7 TOR CODEROOM GOVERNMENT DEPT. or COMMERCE LTR.TONARV 11-15-72 8 MEMO FROM NL TO PRIORITY 9 DECODED BY INFORMATION NLT 4.12.73 10 ROUTINE PARAPHRASED CHECKED BY Initials BK.Z.Date 5/21/74 11 BY DEFERRED 12 DITTOED BASEGRAM 13 ROUTED BY BY 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 PAGE 2 OF9 241420 NCR 1568 CHECK BELOW 16 17 18 Originator till in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 WITH THE UNDERSTANDING THAT I WAS SPEAKING IN MY CAPACITY AS 22 ECONOMIC ADVISOR TO CHINESE GOVERNMENT RECOMMENDED SPECIFICALLY 23 24 THAT GENERALISSIMO ESTABLISH A SUPREME ECONOMIC COUNCIL UNDER 25 HIS GENERAL DIRECTION AND MAKE PUBLIC A STRONG AND LIBERAL 26 27 STATEMENT OF ECONOMIC POLICY TO RESTORE THE CONFIDENCE AND HOPE 28 OF THE PEOPLE BY SHOWING THAT THE GOVERNMENT IS AWARE OF THEIR 29 30 NEEDS AND IS TAKING REALISTIC STEPS TO IMPROVE THEIR SITUATION. 31 GENERALISSIMO AGREED THAT THESE MEASURES WERE NEEDED. HE ASKED 32 33 ME TO WORK WITH WONG WEN HAO IN PREPARING THE ORGANIC LAW ESTA- 34 BLISHING THE COUNCIL AND THE STATEMENT OF ECONOMIC POLICY. AFTER 35 36 REACHING FULL AGREEMENT WITH PREMIER SOONG WE MET TODAY WITH 37 GENERALISSIMO AND HE COMPLETELY APPROVED LAW STATEMENT OF POLICY 38 39 40 AND SUGGESTED COURSE OF ACTION. ACCORDING TO PRESENT PLAN THE 41 SUPREME NATIONAL DEFENSE COUNCIL WHICH IS CHINAS TOP GOVERNING 42 BODY WILL MEET MORNING OF NOVEMBER 26 AND ANNOUNCE APPROVAL OF 43 44 ORGANIC LAW ESTABLISHING SUPREME ECONOMIC COUNCIL. LAW STATES 45 IN PART "FOR PURPOSE OF DIRECTING AND PROMOTING EARLY VIGOROUS 46 47 AND SOUND ECONOMIC RECONSTRUCTION AND DEVELOPMENT OF CHINA ALONG 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-1 OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" instructions sained in Article 76, Navy Regulations. COPY NO. OPNAV 19-78 TO SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE ASTERISK (*) MAILGRAM ADDRESSEE 1 FROM EDWIN A LOCKE JR PRIORITY 2 3 ROUTINE RELEASED BY 5 TRUMAN NATIONAL DATE ARCHIVES AND LEGRARY FOR ACTION 4 BARRY, THE PRESIDENT DEFERRED 5 BASEGRAM 6 ACCORDS U.S. SERVICE" 7 TOR CODEROOM GOVERNMENT DECLASSIFIED by authority of DEPT. OF COMMERCE 8 LTR TONARS 11-15-T3 PRIORITY 9 DECODED BY MEMO FROM NL TO BY INFORMATION 10 NLT 4-12-73 ROUTINE PARAPHRASED CHECKED 11 BY Initials BKZ Date 5/21/79 DEFERRED 12 DITTOED BASEGRAM 13 ROUTED BY BY 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 CHECK BELOW 16 PAGE 3 OF 9 241420 NCR 1568 17 18 Originator till in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 22 LINES THAT WILL ASSURE A UNITED DEMOCRATIC STRONG AND PROSPEROUS 23 NATION HAVING A SUBSTANTIAL AND STEADY RISE IN THE MASS LIVING 24 25 STANDARDS OF ITS PEOPLE THERE SHALL BE ESTABLISHED UNDER THE 26 GENERAL DIRECTION OF THE PRESIDENT OF THE NAVTONAL GOVT A SUPREME 27 28 ECONOMIC COUNCIL. RESPONSIBILITY AND AUTHORITY OF COUNCIL IN 29 ECONOMIC FIELD SHALL BE TO: ACHIEVE FULLEST AND MOST EFFECTIVE 30 31 UTILIZATION OF CHINESE RESOURCES, ESTABLISH SUCH BROAD POLICIES 32 PLANS AND PROGRAMS AS MAY BE ESSENTIAL, COORDINATE ECONOMIC 33 34 ACTIVITIES OF VARIOUS DEPARTMENTS OF GOVT, FOLLOW UP ACTIVELY ON 35 PROGRESS BEING MADE. COUNCIL SHALL HAVE FULL AUTHORITY OVER 36 37 ECONOMIC ACTIVITIES OF ALL AGENCIES OF GOVT AND ITS DECISIONS 38 SHALL BE FINAL. COUNCIL SHALL HAVE AS ITS CHAIRMAN AND VICE 39 40 CHAIRMAN PRESIDENT AND VICE PRESIDENT OF EXECUTIVE YUAN RESPECT- 41 IVELY. COUNCIL SHALL PERIODICALLY MEET WITH AND REPORT PROGRESS TO2 43 TO PRESIDENT OF NATIONAL GOVT. COUNCIL SHALL ALSO MAKE PERIODIC 44 REPORTS TO PEOPLE OF CHINA". AS NOW ARRANGED ON AFTERNOON OF 45 46 NOV 26 FIRST MEETING OF SUPREME ECONOMIC COUNCIL WILL BE HELD AND 47 GENERALISSIMO WILL READ A STATEMENT OF POLICY WHICH WILL BE 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-1 OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" 241420 ons contained in Article 76, Navy Regulations. COPY NO. OPNAV 19-78 SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE ASTERISK (*) MAILGRAM ADDRESSEE EDWIN A LOCKE JR 1 FROM PRIORITY 2 3 RELEASED BY FOR ACTION THE PRESIDENT ROUTINE is TRUMAN 4 DEFERRED NATIONAL 5 DATE ARCHIVES AND ACCORDS LIBRARY DICLASSIFIED by authority of BASEGRAM 6 8.5. SERVICE" DEPT. of COMMERCE LTR 7 TOR CODEROOM GOVERNMENT TO NARV 11.15.78 MEMO FROM NL TO 8 NLT 4-12-73 PRIORITY 9 DECODED BY PARAPHRASED INFORMATION 10 Initials BKZ Date 5/21/71 ROUTINE CHECKED 11 BY BY DEFERRED 12 DITTOED BASEGRAM 13 ROUTED BY BY 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 PAGE 4 OF 9 CHECK BELOW 241420 NCR 1568 16 17 18 Originator till in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 GIVEN WORLD WIDE PUBLICITY. THIS STATEMENT READS IN PART "WE 22 MUST NOT ALLOW INTERNAL DISTURBANCES TO MAKE US LOSE SIGHT OF 23 24 BASIC NEEDS OF CHINESE PEOPLE FOR A FAR HIGHER STANDARD OF LIVING 25 THAN THEY NOW HAVE. AT THIS MOMENT AS WE ALL KNOW CHINA IS BEING 26 27 DISTURBED BY POLITICAL EXTREMISTS AND OTHER UNRULY ELEMENTS WHO 28 PLACE THEIR PARTISAN AND PERSONAL INTERESTS ABOVE NATIONAL IN- 29 30 TEREST AND WHO HAVE GONE so FAR AS TO INTERFERE VIOLENTLY WITH 31 EFFORTS OF NATIONAL GOVT TO ESTABLISH ORDER IN LIBERATED PROVINCES, 32 33 GOVT IS ACTING TO CORRECT THIS SITUATION. WE SHALL SPARE NO EFFORT³⁴ 35 TO BRING INTERNAL ORDER AND SECURITY TO NATION, BUT AT SAME TIME 36 WE SHALL FULFILL OUR EQUALLY GREAT RESPONSIBILITY TO HELP PEOPLE 37 38 REPAIR THE RAVAGES AND DISLOCATIONS OF WAR AND IMPROVE CONDITIONS 39 40 OF THEIR LIVELIHOOD. IN CREATING SUPREME ECONOMIC COUNCIL 41 NATIONAL GOVT RECOGNIZES PARAMOUNT IMPORTANCE OF SOUND AND 42 43 IMMEDIATE ECONOMIC ACTION IN CHINA. IT IS MY INTENTION TO ASSUME 44 PERSONALLY GENERAL DIRECTION OF CHINA'S ECONOMIC RECONSTRUCTION 45 46 AND DEVELOPMENT." STATEMENT THEN REVIEWS FRANKLY AND IN DETAIL 47 GRAVE ECONOMIC DIFFICULTIES NOW CONFRONGING PEOPLE OF CHINA BOTH 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-J OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" instructions contained in Article 76, Navy Regulations. COPY NO. 241420 OPNAV 19-78 # SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE EDWIN A LOCKE JR ASTERISK (*) MAILGRAM ADDRESSEE 1 FROM PRIORITY 2 3 ROUTINE RELEASED BY TRUMAN "NATIONAL DATE ARCHIVES AND LIBRARY FOR ACTION THE PRESIDENT 4 Addvey DEFERRED 5 RECORDS BASEGRAM 6 U.S. SERVICE" GOVERNMENT DECLASSIFIED by authority 7 TOR CODEROOM DEPT. OR COMMERCE of TO NARD MEMO 11.15.72 LTR. 8 FROM NLTO PRIORITY 9 DECODED BY BY INFORMATION NLT 4-12-73 10 ROUTINE PARAPHRASED CHECKED 11 BY Initials BKZ Date 5/21/74 DEFERRED 12 DITTOED BASEGRAM 13 ROUTED BY BY 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 RAGE 5 OF 9 CHECK BELOW 241420 NCR 1568 16 17 18 Originator till in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 22 IN INDUSTRY AND IN AGRICULTURE. IT STATES' "THIS IS A CRISIS IN 23 CHINA'S HISTORY AND CHINA CAN NOW LEAST OF ALL TOLERATE CORRUPT 24 25 OFFICIALS OR SELF SEEKERS WHO EXPLOIT PEOPLE IN THEIR ATTEMPTS 26 TO GAIN PERSONAL WEALTH AND POWER. SUCH MEN MUST AND WILL BE 27 28 ELIMINATED FROM THE PUBLIC SERVICE AND SEVERELY PUNISHED. 29 STATEMENT THEN GOES ON TO SPEAK OF ECONOMIC OPPORTUNITY WHICH 30 THI 31 WILL UNFOLD TO PEOPLE OF CHINA AS INTERNAL DISTURBANCES ARE 32 QUELLED AND IMMEDIATE ECONOMIC SHORTAGES OVERCOME. IT STATES 33 34 "IN UNDERTAKING ALL SUCH IMPORTANT WORK OF RECONSTRUCTION AND 35 DEVELOPMENT, COUNCIL MUST RECOGNIZE THAT CHINA'S PROBLEMS CANNOT 36 37 BE ENTIRELY SOLVED BY AID FROM OTHER NATIONS. WE MUST HELP OUR- 38 1 SELVES. OUR ENTIRE NATIONAL FUTURE HINGES ON OUR ABALITY TO TAP 39 40 WITHIN OURSELVES THE FORCES OF CONSTRUCTIVE POWERS WHICH ARE KEY 41 TO GREATNESS OF ANY PEOPLE. WHAT WE SEEK FROM OUR FRIENDS ABROAD 42 43 IS PRIMARILY ECONOMIC COOPERATION ON A SOUND BUSINESS BASIS." 44 45 STATEMENT THEN EMPHASIZES NEED FOR SOUND LOCAL ADMINISTRATION. 46 "NATIONAL GOVT DOES NOT INTEND TO ASSUME DETAILED ADMINISTRATION 47 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-J OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" 241420 ons contained in Article 76, Navy Regulations. COPY NO. OPNAV 19-78 TO SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE ASTERISK (*) MAILGRAM ADDRESSEE 1 FROM EDWIN A LOCKE JR PRIORITY 2 RELEASED BY TRUMAN 3 ROUTINE HARRY FOR ACTION 4 'NATIONAL THE PRESIDENT DEFERRED ARCHIVES AND 5 DATE RECORDS 0.5. SERVICE BASEGRAM 6 GOVERNMENT DECLASSIFIED by authority of DEPT. OF COMMERCE 7 TOR CODEROOM LTR. To NARV 11-15-22 8 MEMO To NLT FROM PRIORITY 9 DECODED BY PARAPHRASED BY INFORMATION NL 4-12-73 10 ROUTINE CHECKED Initials BKZ Date 5/21/14 11 BY DEFERRED 12 DITTOED ROUTED BY BY BASEGRAM 13 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 CHECK BELOW PAGE 6 OF 9 241420 NCR 1568 16 17 18 Originator fill in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 22 OF THE NATION'S ECONOMIC LIFE. SOUND LOCAL ADMINISTRATION IS 23 KEYSTONE IN BUILDING OF STRONG DEMOCRATIC NATION." 24 25 GENERALISSIMO'S STATEMENT DIRECTS THE COUNCUL TO PUT INTO EFFECT 26 A NUMBER OF SPECIFIC ECONOMIC PROGRAMS: (1) AN OVERALL 27 28 TRANSPORTATION PROGRAM WHICH WILL INCLUDE A NAVTONNIDE ROAD 29 BUILDING PROGRAM USING JAP POWS PENDING THEIR REPATRIATION. 30 31 (2) AID TO CHINESE FARMERS WHICH WILL INCLUDE INCREASED USE OF 32 FERTILIZERS, INSECTICIDES AND IMPROVED SEED, FREE INSTRUCTION 33 34 OF CHINESE FARMERS, VIGOROUS ENFORCEMENT OF LAWS ELIMINATING 35 EXCESSIVE LAND RENTS AND EXCESSIVE INTEREST RATES ON LOANS, 36 37 ADJUSTMENT OF TAXES TO ACCORD WITH ABILITY TO PAY (3) AID TO 38 CHINESE INDUSTRY TO INCREASE PRODUCTION, PARTICULARLY OF FUELS, 39 40 TEXTILES AND BUILDING MATERIALS. "AS A PRIME REQUISITE, IT IS 41 URGENT THAT STABILIZATION OF CHINESE CURRENCY RELATIVE TO FOREIGN 42 43 CURRENCIES BE ACHIEVED AT EARLIEST POSSIBLE MOMENT. IN ORDER 44 FURTHER TO ENCOURAGE LARGER INDUSTRIAL PRODUCTION, GOVE CONTROLS 45 46 IMPOSED ON INDUSTRY DURING WAR SHOULD BE REMOKED AT ONCE. EXCEPT 47 IN THOSE CASES WHERE SUCH REMOVAL WOULD CLEARLY IMPAIR NATIONAL 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-J OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" instructions contained in Article 76, Navy Regulations. COPY NO. 241420 OPNAV 19-78 SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE ASTERISK (*) MAILGRAM ADDRESSEE 1 FROM PRIORITY 2 DECLASSIFIED by authority of 3 RELEASED BY FOR ACTION DEPT. OF COMMERCE ROUTINE 4 DATE BERRY ARCHIVES S. RECORDS NATIONAL TRUMAN AND LIBRARY LTR TONARD 11-15-73 DEFERRED MEMO FROM NL TO 5 NLT 4-12-73 BASEGRAM 6 U.S. SERVICE" Initials BKZ Date. 5/21/21 7 TOR CODEROOM GOVERNMENT 8 PRIORITY 9 DECODED BY PARAPHRASED BY BY INFORMATION 10 ROUTINE CHECKED 11 DEFERRED 12 DITTOED ROUTED BY BASEGRAM 13 BY 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 PAGE 7 OF 9 241420 NCR 1568 CHECK BELOW 16 17 18 Originator till in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 ECONOMY. DIRECT AND VIGOROUS ACTION SHOULD BE TAKEN TO SPEED UP 22 RECRUITMENT OF QUALIFIED INDUSTRIAL MANAGERS, TECHNICIANS AND 23 24 SKILLED WORKERS TO REPLACE JAP PERSONNEL WHO HAVE BEEN OPERATING 25 CHINESE INDUSTRIES. IMPORTS OF INDUSTRIAL MACHINERY AND QUIP- 26 27 MENT, ADJUSTED TO CHINA'S CAPACITY TO RAY, SHOULD BE SUPERVISED BY 28 COUNCIL so AS TO ASSURE THAT MOST ESSENTIAL INDUSTRIES AND PUBLIC 29 30 SERVICES WILL BE GIVEN FIRST CLAIM ON FUNDS AND TRANSPORTATION 31 AVAILABLE FOR PURCHASES OF SUCH GOODS, COUNCIL SHOULD GIVE GUID- 32 33 ANCE TO INDUSTRY IN PRODUCING GOODS WHICH HAVE ASSURED MARKETS IN 34 CHINA OR ABROAD, AND IN ELIMINATING UNSOUND PRODUCTION. INTEREST 35 36 RATES AND LOAN POLICIES OF CHINA'S BANKS MUST BE REEXAMINED AND 37 RESHAPED TO ENCOURAGE INDUSTRIAL PRODUCTION." (4) EXPANDING 38 39 FOREIGN TRADE FOR CHINASX QQMCTS1S* SHOULD BE A MAJOR ELEMENT IN 40 OUR ACTIVITIES. COUNCIL SHOULD PROMPTLY ESTABLISH A PROGRAM TO 41 42 ENCOURAGE AND ASSIST WITHIN CHINA PRODUCTION OF AGRICULTURAL AND 43 INDUSTRIAL PRODUCTS WHICH ARE WANTED IN FOREIGN MARKETS WHEREVER 44 45 THIS CAN BE DONE WITHOUT DEPRIVING THE CHINESE ECONOMY OF 46 ESSENTIAL COMMODITIES AND WITHOUT EXPOLITATION OF LOW COST LABOR 47 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-1 OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" instructions contained in Article 76, Navy Regulations. COPY NO. 241420 OPNAV 19-78 TO SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE ASTERISK (*) MAILGRAM ADDRESSEE FROM EDWIN A LOCKE JR 1 PRIORITY 2 3 ROUTINE RELEASED BY 4 DATE ARCHIVES.ARG U.S. $. CURDS TRUMAM LIBRARY FOR ACTION THE PRESIDENT DEFERRED 5 BASEGRAM 6 SERVICE" DECLASSIFIED by authority of 7 TOR CODEROOM GOVERNMENT DEPT. OF COMMERCE 8 LTR TO NARV 11-15-72 PRIORITY 9 DECODED BY MEMO FROM NL To PARAPHRASED CHECKED INFORMATION 10 NLT 4-12-73 ROUTINE 11 BY BY Initials BKZ Date 5/21/74 DEFERRED 12 DITTOED BASEGRAM 13 ROUTED BY BY 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFERRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 PAGE 8 OF 9 CHECK BELOW 241420 NCR 1568 16 17 18 Originator till in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 IN CHINA, THROUGH SALE OF HER PRODUCTS ABROAD CHINA CAN OBTAIN 22 FOREIGN EXCHANGE WITH WHICH TO BUY MUCH OF THE NEEDED MACHINERY 23 24 EQUIPMENT AND MATERIALS WHICH SHE CANNOT AS YET PRODUCE HERSELF." 25 15) PROGRAMS FOR IMPROVED STANDARDS OF HEALTH HOUSING FREE PUBLIC 26 27 EDUCATION AND OTHER ELEMENTS NECESSARY TO PROVIDE STRONG SOCIAL BASE 28 FOR ECONOMIC ACTIVITIES OF PEOPLE (6) AN IMMEDIATE START ON 30 31 FORMULATING A REALISTIC 5 YEAR PROGRAM OF ECONOMIC DEVELOPMENT 32 GIVING PARTICULAR STRESS TO LONG RANGE IMPORTANCE OF HARNESSING 33 34 CHINA'S RIVERS WITH A VIEW TO FLOOD CONTROL RIVER NAVIGATION AND 35 CHEAP ELECTRIC POWER. 36 37 SOONG INFORMS ME THAT ON NOV 27 IN LINE WITH ABOVE STATEMENT GOVT 38 WILL ANNOUNCE LIFTING OF CERTAIN WART IME CONTROLS NOW HAMPERING 1 39 40 INDUSTRY AND FOREIGN TRADE. 41 42 I BELIEVE THAT ESTABLISHMENT OF SUPREME ECONOMIC COUNCIL IS A STEP 43 MAKING FOR CLOSER ECONOMIC COOPERATION BETWEEN CHINA AND THE 44 45 UNITED STATES, IT CAN BE A SIGNIFICANT STEP, IF PROPERLY 46 FOLLOWED UP BY CHINESE GOVT AND WILL MAKE POSSIBLE EFFECTIVE 47 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-I OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" instrue 241420 ained in Article 76, Navy Regulations. COPY NO. OPNAV 19-78 SECRET DISPATCH DRAFTER EXT. ADDRESSEES PRECEDENCE EDWIN A LOCKE JR ASTERISK (*) MAILGRAM ADDRESSEE 1 FROM PRIORITY 2 3 ROUTINE RELEASED BY FOR ACTION 4 TRUMAN THE PRESIDENT DEFERRED 5 DATE NATIONAL ARCHIVES AND LIBRARY BASEGRAM 6 RECORDS DECLASSIFIED by authority of 7 TOR CODEROOM U.S. SERVICE" DEPT. OF COMMERCE GOVERNMENT 8 LTR. TO NARV 11.15.72 MEMO FROM NL TO PRIORITY 9 DECODED BY INFORMATION NLT 4-12-73 10 ROUTINE PARAPHRASED CHECKED Initials BKZ0105/21/74 BKZ 5/21/74 11 BY BY DEFERRED 12 DITTOED BASEGRAM 13 ROUTED BY BY 14 UNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFERRED PRECEDENCE AND AS ADMINISTRATIVE. IF OPERATIONAL 15 RPAGE 9 OF 9 NCR 1568 CHECK BELOW 241420 16 17 18 Originator till in DATE AND TIME GROUP (Use G. C. T.) 19 ON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT 20 21 22 UTILIZATION OF AMERICAN INDUSTRIAL EXPERIENCE. SINCE IN ADDITION 23 I HAVE NOW OBTAINED ANDADEQUATE FIRST HAND PICTURE OF ECONOMIC 24 25 CONDITIONS HERE AND SINCE AMERICAN PRODUCTION MISSION IS NOW 26 COMPLETELY LIQUIDATED I FEEL THAT I SHOULD LEAVE CHINA PROMPELY. 27 28 I HAVE AGREED TO REMAIN IN CHUNGKING UNTIL AFTER FIRST MEETING OF 29 SUPREME ECONOMIC COUNCIL ON NOV 26 BUT HAVE DECLINED TO PARTICI- 30 31 PATE IN IT PERSONALLY AS I FEEL THAT THIS SHOULD BE AN EXCLUSIVELY 32 CHINESE AFFAIR. 33 34 I BELIEVE I SHOULD REPORT FULL SITUATION IN CHINA TO YOU PERSON- 35 ALLY BEFORE DECISION IS REACHED AS TO POSSIBLE VISITS BY ME TO 36 37 OTHER CAPITALS ACCORDINGLY UNLESS YOU HAVE OTHER INSTRUCTIONS FOR 38 ME MY PRESENT PLANS ARE TO LEAVE CHUNGKING ON EVENING OF NOV 26 39 40 AND RETURN DIRECTLY TO WASHINGTON. 41 42 43 DELAYED DUE TO SERVICING 1 *AS RECEIVED 44 45 46 47 48 49 No. I ADMIRAL. No. 2 FILE. No. 3F-1 OR CHARTROOM. No. 4 SPECIAL. 50 51 TOP SECRET 52 Handle only in accordance with "Top Secret" instructions 241420 contained in Article 76, Navy Regulations. COPY NO. OPNAV 19-78

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    "ocrText": "NLT-407\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nASTERISK (*) MAILGRAM ADDRESSEE\n1\nFROM EDWIN A LOCKE JR\nPRIORITY\n2\n3\nRELEASED BY\nROUTINE\n25 NOV 1945\nHARRY ARCHIVES S. \"NATIONAL RECORDS AND\nDATE\nFOR ACTION\nTHE PRESIDENT\n4\nDEFERRED\n5\nSERVICE\"\nBASEGRAM\n6\nU.S.\nGOVERNMENT\nDECLASSIFIED by authority of\nDEPT. OF COMMERCE LTR\n7\nTOR CODEROOM 0909\nTO NARD 11-15-12\n8\nMEMO TO NLT FROM\nDECODED BY BECKMAN\nPRIORITY\n9\nPARAPHRASED\nWOODWARD\nCHECKED\nBY\nBY\nINFORMATION\nNL 4-12-73\n10\nSJOSTEN\nInitials BKZ Date 5/21/14\nROUTINE\n11\nDEFERRED\n12\nWOODWARD\nDITTOED\nROUTED BY\nBY\nSJOSTEN\nBASEGRAM\n13\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFERRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL 15\nPAGE 1 OF 9\n241420\nNCR 1568\nCHECK BELOW\n16\n17\n18\nOriginator till in DATE AND TIME GROUP\n(Use G. C. T.)\n19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\nTOP SECRET. FOR PRESIDENT'S EYES ONLY FROM EDWIN A LOCKE VIA\n22\nALUSNA CHUNGKING.\n23\n24\n25\n26\nTHIS INTENDED MY FINAL CABLE TOYYOU BEFORE DEPARTURE FROM CHINA.\n27\nSINCE MY NOVEMBER 5 CABLE HAVE HAD FURTHER CONFERENCES WITH\n28\n29\nGENERALISSIMO CHIANG KAI SHEK PREMIER T V SOONG AND VICE PREMIER\n30\nWONG WEN HAO AND HAVE COMPLETED 8 DAY VISIT NORTH CHINA. THIS\n31\n32\nTRIP REVEALED ADDITIONAL EVIDENCE CHINESE PEOPLE ACUTELY\n33\nDISTURBED BY ECONOMIC CONDITIONS AND RAPIDLY LOSING CONFIDENCE\n34\n35\nIN CENTRAL GOVERNMENT THOUGH RETAINING FAITH IN GENERALISSIMO\n36\nPERSONALLY. I RETURNED WITH STRONG CONVICTION THERE CANNOT BE\n37\n38\nMUCH BASIS FOR PRACTICAL AMERICAN ECONOMIC COOPERATION WITH\n39\n40\nCHINA UNTIL CHINA HERSELF BEGINS TO SOLVE HER INTERNAL ECONOMIC\n41\n42\nPROBLEMS. WITH THIS IN MIND SUGGESTED TO GENERALISSIMO THAT\nCHINA TAKE FRESH AND VIGOROUS ACTION ALLEVIATE ECONOMIC STRESS\n43\n44\nAND INITIATE SOUND PROGRAM ECONOMIC RECONSTRUCTION AND DEVELOP-\n45\n46\nMENT AND THAT HE PERSONALLY IDENTIFY HIMSELF WITH SUCH ACTION.\n47\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-1 OR CHARTROOM.\nNo. 4 SPECIAL.\n50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\" instructions contained in Article 76, Navy Regulations.\nCOPY NO.\n241420\nOPNAV 19-78\nT\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nASTERISK (*) MAILGRAM ADDRESSEE\nEDWIN A LOCKE\n1\nFROM\nPRIORITY\n2\n3\nROUTINE\nRELEASED BY\n4\nDATE\nMARAY U.S. ARCHIVES SERVICE\" 'NATIONAL RECORDS TRUMAN AND FIBRARY\nFOR ACTION\nDEFERRED\nTHE PRESIDENT\n5\nBASEGRAM\n6\nDECLASSINED by authority of\n7\nTOR CODEROOM\nGOVERNMENT\nDEPT. or COMMERCE\nLTR.TONARV 11-15-72\n8\nMEMO FROM NL TO\nPRIORITY\n9\nDECODED BY\nINFORMATION\nNLT 4.12.73\n10\nROUTINE\nPARAPHRASED\nCHECKED\nBY\nInitials BK.Z.Date 5/21/74\n11\nBY\nDEFERRED\n12\nDITTOED\nBASEGRAM\n13\nROUTED BY\nBY\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL\n15\nPAGE 2 OF9\n241420\nNCR 1568\nCHECK BELOW\n16\n17\n18\nOriginator till in DATE AND TIME GROUP\n(Use G. C. T.)\n19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\nWITH THE UNDERSTANDING THAT I WAS SPEAKING IN MY CAPACITY AS\n22\nECONOMIC ADVISOR TO CHINESE GOVERNMENT RECOMMENDED SPECIFICALLY\n23\n24\nTHAT GENERALISSIMO ESTABLISH A SUPREME ECONOMIC COUNCIL UNDER\n25\nHIS GENERAL DIRECTION AND MAKE PUBLIC A STRONG AND LIBERAL\n26\n27\nSTATEMENT OF ECONOMIC POLICY TO RESTORE THE CONFIDENCE AND HOPE\n28\nOF THE PEOPLE BY SHOWING THAT THE GOVERNMENT IS AWARE OF THEIR\n29\n30\nNEEDS AND IS TAKING REALISTIC STEPS TO IMPROVE THEIR SITUATION.\n31\nGENERALISSIMO AGREED THAT THESE MEASURES WERE NEEDED. HE ASKED\n32\n33\nME TO WORK WITH WONG WEN HAO IN PREPARING THE ORGANIC LAW ESTA-\n34\nBLISHING THE COUNCIL AND THE STATEMENT OF ECONOMIC POLICY. AFTER\n35\n36\nREACHING FULL AGREEMENT WITH PREMIER SOONG WE MET TODAY WITH\n37\nGENERALISSIMO AND HE COMPLETELY APPROVED LAW STATEMENT OF POLICY\n38\n39\n40\nAND SUGGESTED COURSE OF ACTION. ACCORDING TO PRESENT PLAN THE\n41\nSUPREME NATIONAL DEFENSE COUNCIL WHICH IS CHINAS TOP GOVERNING\n42\nBODY WILL MEET MORNING OF NOVEMBER 26 AND ANNOUNCE APPROVAL OF\n43\n44\nORGANIC LAW ESTABLISHING SUPREME ECONOMIC COUNCIL. LAW STATES\n45\nIN PART \"FOR PURPOSE OF DIRECTING AND PROMOTING EARLY VIGOROUS\n46\n47\nAND SOUND ECONOMIC RECONSTRUCTION AND DEVELOPMENT OF CHINA ALONG\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-1 OR CHARTROOM.\nNo. 4 SPECIAL.\n50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\" instructions sained in Article 76, Navy Regulations.\nCOPY NO.\nOPNAV 19-78\nTO\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nASTERISK (*) MAILGRAM ADDRESSEE\n1\nFROM\nEDWIN A LOCKE JR\nPRIORITY\n2\n3\nROUTINE\nRELEASED BY\n5\nTRUMAN\nNATIONAL\nDATE\nARCHIVES AND\nLEGRARY\nFOR ACTION\n4\nBARRY,\nTHE PRESIDENT\nDEFERRED\n5\nBASEGRAM\n6\nACCORDS\nU.S.\nSERVICE\"\n7\nTOR CODEROOM\nGOVERNMENT\nDECLASSIFIED by authority of\nDEPT. OF COMMERCE\n8\nLTR TONARS 11-15-T3\nPRIORITY\n9\nDECODED BY\nMEMO FROM NL TO\nBY\nINFORMATION\n10\nNLT 4-12-73\nROUTINE\nPARAPHRASED\nCHECKED\n11\nBY\nInitials BKZ Date 5/21/79\nDEFERRED\n12\nDITTOED\nBASEGRAM\n13\nROUTED BY\nBY\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL 15\nCHECK BELOW\n16\nPAGE 3 OF 9\n241420\nNCR 1568\n17\n18\nOriginator till in DATE AND TIME GROUP\n(Use G. C. T.) 19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\n22\nLINES THAT WILL ASSURE A UNITED DEMOCRATIC STRONG AND PROSPEROUS\n23\nNATION HAVING A SUBSTANTIAL AND STEADY RISE IN THE MASS LIVING\n24\n25\nSTANDARDS OF ITS PEOPLE THERE SHALL BE ESTABLISHED UNDER THE\n26\nGENERAL DIRECTION OF THE PRESIDENT OF THE NAVTONAL GOVT A SUPREME\n27\n28\nECONOMIC COUNCIL. RESPONSIBILITY AND AUTHORITY OF COUNCIL IN\n29\nECONOMIC FIELD SHALL BE TO: ACHIEVE FULLEST AND MOST EFFECTIVE\n30\n31\nUTILIZATION OF CHINESE RESOURCES, ESTABLISH SUCH BROAD POLICIES\n32\nPLANS AND PROGRAMS AS MAY BE ESSENTIAL, COORDINATE ECONOMIC\n33\n34\nACTIVITIES OF VARIOUS DEPARTMENTS OF GOVT, FOLLOW UP ACTIVELY ON\n35\nPROGRESS BEING MADE. COUNCIL SHALL HAVE FULL AUTHORITY OVER\n36\n37\nECONOMIC ACTIVITIES OF ALL AGENCIES OF GOVT AND ITS DECISIONS\n38\nSHALL BE FINAL. COUNCIL SHALL HAVE AS ITS CHAIRMAN AND VICE\n39\n40\nCHAIRMAN PRESIDENT AND VICE PRESIDENT OF EXECUTIVE YUAN RESPECT-\n41\nIVELY. COUNCIL SHALL PERIODICALLY MEET WITH AND REPORT PROGRESS TO2\n43\nTO PRESIDENT OF NATIONAL GOVT. COUNCIL SHALL ALSO MAKE PERIODIC\n44\nREPORTS TO PEOPLE OF CHINA\". AS NOW ARRANGED ON AFTERNOON OF\n45\n46\nNOV 26 FIRST MEETING OF SUPREME ECONOMIC COUNCIL WILL BE HELD AND\n47\nGENERALISSIMO WILL READ A STATEMENT OF POLICY WHICH WILL BE\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-1 OR CHARTROOM.\nNo. 4 SPECIAL.\n50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\" 241420 ons contained in Article 76, Navy Regulations.\nCOPY NO.\nOPNAV 19-78\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nASTERISK (*) MAILGRAM ADDRESSEE\nEDWIN A LOCKE JR\n1\nFROM\nPRIORITY\n2\n3\nRELEASED BY\nFOR ACTION\nTHE PRESIDENT\nROUTINE\nis\nTRUMAN\n4\nDEFERRED\nNATIONAL\n5\nDATE\nARCHIVES AND\nACCORDS\nLIBRARY\nDICLASSIFIED by authority of\nBASEGRAM\n6\n8.5.\nSERVICE\"\nDEPT. of COMMERCE LTR\n7\nTOR CODEROOM\nGOVERNMENT\nTO NARV 11.15.78\nMEMO FROM NL TO\n8\nNLT 4-12-73\nPRIORITY\n9\nDECODED BY\nPARAPHRASED\nINFORMATION\n10\nInitials BKZ Date 5/21/71\nROUTINE\nCHECKED\n11\nBY\nBY\nDEFERRED\n12\nDITTOED\nBASEGRAM\n13\nROUTED BY\nBY\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL 15\nPAGE 4 OF 9\nCHECK BELOW\n241420\nNCR 1568\n16\n17\n18\nOriginator till in DATE AND TIME GROUP\n(Use G. C. T.) 19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\nGIVEN WORLD WIDE PUBLICITY. THIS STATEMENT READS IN PART \"WE\n22\nMUST NOT ALLOW INTERNAL DISTURBANCES TO MAKE US LOSE SIGHT OF\n23\n24\nBASIC NEEDS OF CHINESE PEOPLE FOR A FAR HIGHER STANDARD OF LIVING\n25\nTHAN THEY NOW HAVE. AT THIS MOMENT AS WE ALL KNOW CHINA IS BEING\n26\n27\nDISTURBED BY POLITICAL EXTREMISTS AND OTHER UNRULY ELEMENTS WHO\n28\nPLACE THEIR PARTISAN AND PERSONAL INTERESTS ABOVE NATIONAL IN-\n29\n30\nTEREST AND WHO HAVE GONE so FAR AS TO INTERFERE VIOLENTLY WITH\n31\nEFFORTS OF NATIONAL GOVT TO ESTABLISH ORDER IN LIBERATED PROVINCES,\n32\n33\nGOVT IS ACTING TO CORRECT THIS SITUATION. WE SHALL SPARE NO EFFORT³⁴\n35\nTO BRING INTERNAL ORDER AND SECURITY TO NATION, BUT AT SAME TIME\n36\nWE SHALL FULFILL OUR EQUALLY GREAT RESPONSIBILITY TO HELP PEOPLE\n37\n38\nREPAIR THE RAVAGES AND DISLOCATIONS OF WAR AND IMPROVE CONDITIONS\n39\n40\nOF THEIR LIVELIHOOD. IN CREATING SUPREME ECONOMIC COUNCIL\n41\nNATIONAL GOVT RECOGNIZES PARAMOUNT IMPORTANCE OF SOUND AND\n42\n43\nIMMEDIATE ECONOMIC ACTION IN CHINA. IT IS MY INTENTION TO ASSUME\n44\nPERSONALLY GENERAL DIRECTION OF CHINA'S ECONOMIC RECONSTRUCTION\n45\n46\nAND DEVELOPMENT.\" STATEMENT THEN REVIEWS FRANKLY AND IN DETAIL\n47\nGRAVE ECONOMIC DIFFICULTIES NOW CONFRONGING PEOPLE OF CHINA BOTH\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-J OR CHARTROOM.\nNo. 4 SPECIAL.\n50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\" instructions contained in Article 76, Navy Regulations.\nCOPY NO.\n241420\nOPNAV 19-78\n#\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nEDWIN A LOCKE JR\nASTERISK (*) MAILGRAM ADDRESSEE\n1\nFROM\nPRIORITY\n2\n3\nROUTINE\nRELEASED BY\nTRUMAN\n\"NATIONAL\nDATE\nARCHIVES AND\nLIBRARY\nFOR ACTION\nTHE PRESIDENT\n4\nAddvey\nDEFERRED\n5\nRECORDS\nBASEGRAM\n6\nU.S.\nSERVICE\"\nGOVERNMENT\nDECLASSIFIED by authority\n7\nTOR CODEROOM\nDEPT. OR COMMERCE of\nTO NARD MEMO 11.15.72\nLTR.\n8\nFROM NLTO\nPRIORITY\n9\nDECODED BY\nBY\nINFORMATION\nNLT 4-12-73\n10\nROUTINE\nPARAPHRASED\nCHECKED\n11\nBY\nInitials BKZ Date 5/21/74\nDEFERRED\n12\nDITTOED\nBASEGRAM\n13\nROUTED BY\nBY\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL 15\nRAGE 5 OF 9\nCHECK BELOW\n241420\nNCR 1568\n16\n17\n18\nOriginator till in DATE AND TIME GROUP\n(Use G. C. T.) 19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\n22\nIN INDUSTRY AND IN AGRICULTURE. IT STATES' \"THIS IS A CRISIS IN\n23\nCHINA'S HISTORY AND CHINA CAN NOW LEAST OF ALL TOLERATE CORRUPT\n24\n25\nOFFICIALS OR SELF SEEKERS WHO EXPLOIT PEOPLE IN THEIR ATTEMPTS\n26\nTO GAIN PERSONAL WEALTH AND POWER. SUCH MEN MUST AND WILL BE\n27\n28\nELIMINATED FROM THE PUBLIC SERVICE AND SEVERELY PUNISHED.\n29\nSTATEMENT THEN GOES ON TO SPEAK OF ECONOMIC OPPORTUNITY WHICH\n30\nTHI\n31\nWILL UNFOLD TO PEOPLE OF CHINA AS INTERNAL DISTURBANCES ARE\n32\nQUELLED AND IMMEDIATE ECONOMIC SHORTAGES OVERCOME. IT STATES\n33\n34\n\"IN UNDERTAKING ALL SUCH IMPORTANT WORK OF RECONSTRUCTION AND\n35\nDEVELOPMENT, COUNCIL MUST RECOGNIZE THAT CHINA'S PROBLEMS CANNOT\n36\n37\nBE ENTIRELY SOLVED BY AID FROM OTHER NATIONS. WE MUST HELP OUR-\n38\n1\nSELVES. OUR ENTIRE NATIONAL FUTURE HINGES ON OUR ABALITY TO TAP\n39\n40\nWITHIN OURSELVES THE FORCES OF CONSTRUCTIVE POWERS WHICH ARE KEY\n41\nTO GREATNESS OF ANY PEOPLE. WHAT WE SEEK FROM OUR FRIENDS ABROAD 42\n43\nIS PRIMARILY ECONOMIC COOPERATION ON A SOUND BUSINESS BASIS.\"\n44\n45\nSTATEMENT THEN EMPHASIZES NEED FOR SOUND LOCAL ADMINISTRATION.\n46\n\"NATIONAL GOVT DOES NOT INTEND TO ASSUME DETAILED ADMINISTRATION\n47\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-J OR CHARTROOM.\nNo. 4 SPECIAL.\n50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\"\n241420\nons contained in Article 76, Navy Regulations.\nCOPY NO.\nOPNAV 19-78\nTO\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nASTERISK (*) MAILGRAM ADDRESSEE\n1\nFROM EDWIN A LOCKE JR\nPRIORITY\n2\nRELEASED BY\nTRUMAN\n3\nROUTINE\nHARRY\nFOR ACTION\n4\n'NATIONAL\nTHE PRESIDENT\nDEFERRED\nARCHIVES AND\n5\nDATE\nRECORDS\n0.5.\nSERVICE\nBASEGRAM\n6\nGOVERNMENT\nDECLASSIFIED by authority of\nDEPT. OF COMMERCE\n7\nTOR CODEROOM\nLTR. To NARV 11-15-22\n8\nMEMO To NLT FROM\nPRIORITY\n9\nDECODED BY\nPARAPHRASED\nBY\nINFORMATION\nNL 4-12-73\n10\nROUTINE\nCHECKED\nInitials BKZ Date 5/21/14\n11\nBY\nDEFERRED\n12\nDITTOED\nROUTED BY\nBY\nBASEGRAM\n13\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL 15\nCHECK BELOW\nPAGE 6 OF 9\n241420\nNCR 1568\n16\n17\n18\nOriginator fill in DATE AND TIME GROUP\n(Use G. C. T.) 19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\n22\nOF THE NATION'S ECONOMIC LIFE. SOUND LOCAL ADMINISTRATION IS\n23\nKEYSTONE IN BUILDING OF STRONG DEMOCRATIC NATION.\"\n24\n25\nGENERALISSIMO'S STATEMENT DIRECTS THE COUNCUL TO PUT INTO EFFECT\n26\nA NUMBER OF SPECIFIC ECONOMIC PROGRAMS: (1) AN OVERALL\n27\n28\nTRANSPORTATION PROGRAM WHICH WILL INCLUDE A NAVTONNIDE ROAD\n29\nBUILDING PROGRAM USING JAP POWS PENDING THEIR REPATRIATION.\n30\n31\n(2) AID TO CHINESE FARMERS WHICH WILL INCLUDE INCREASED USE OF\n32\nFERTILIZERS, INSECTICIDES AND IMPROVED SEED, FREE INSTRUCTION\n33\n34\nOF CHINESE FARMERS, VIGOROUS ENFORCEMENT OF LAWS ELIMINATING\n35\nEXCESSIVE LAND RENTS AND EXCESSIVE INTEREST RATES ON LOANS,\n36\n37\nADJUSTMENT OF TAXES TO ACCORD WITH ABILITY TO PAY (3) AID TO\n38\nCHINESE INDUSTRY TO INCREASE PRODUCTION, PARTICULARLY OF FUELS,\n39\n40\nTEXTILES AND BUILDING MATERIALS. \"AS A PRIME REQUISITE, IT IS\n41\nURGENT THAT STABILIZATION OF CHINESE CURRENCY RELATIVE TO FOREIGN\n42\n43\nCURRENCIES BE ACHIEVED AT EARLIEST POSSIBLE MOMENT. IN ORDER\n44\nFURTHER TO ENCOURAGE LARGER INDUSTRIAL PRODUCTION, GOVE CONTROLS\n45\n46\nIMPOSED ON INDUSTRY DURING WAR SHOULD BE REMOKED AT ONCE. EXCEPT\n47\nIN THOSE CASES WHERE SUCH REMOVAL WOULD CLEARLY IMPAIR NATIONAL\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-J OR CHARTROOM.\nNo. 4 SPECIAL.\n50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\" instructions contained in Article 76, Navy Regulations.\nCOPY NO.\n241420\nOPNAV 19-78\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nASTERISK (*) MAILGRAM ADDRESSEE\n1\nFROM\nPRIORITY\n2\nDECLASSIFIED by authority of\n3\nRELEASED BY\nFOR ACTION\nDEPT. OF COMMERCE\nROUTINE\n4\nDATE\nBERRY ARCHIVES S. RECORDS NATIONAL TRUMAN AND LIBRARY\nLTR TONARD 11-15-73\nDEFERRED\nMEMO FROM NL TO\n5\nNLT 4-12-73\nBASEGRAM\n6\nU.S.\nSERVICE\"\nInitials BKZ Date. 5/21/21\n7\nTOR CODEROOM\nGOVERNMENT\n8\nPRIORITY\n9\nDECODED BY\nPARAPHRASED\nBY\nBY\nINFORMATION\n10\nROUTINE\nCHECKED\n11\nDEFERRED\n12\nDITTOED\nROUTED BY\nBASEGRAM\n13\nBY\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFFRRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL 15\nPAGE 7 OF 9\n241420\nNCR 1568\nCHECK BELOW\n16\n17\n18\nOriginator till in DATE AND TIME GROUP\n(Use G. C. T.) 19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\nECONOMY. DIRECT AND VIGOROUS ACTION SHOULD BE TAKEN TO SPEED UP\n22\nRECRUITMENT OF QUALIFIED INDUSTRIAL MANAGERS, TECHNICIANS AND\n23\n24\nSKILLED WORKERS TO REPLACE JAP PERSONNEL WHO HAVE BEEN OPERATING\n25\nCHINESE INDUSTRIES. IMPORTS OF INDUSTRIAL MACHINERY AND QUIP-\n26\n27\nMENT, ADJUSTED TO CHINA'S CAPACITY TO RAY, SHOULD BE SUPERVISED BY 28\nCOUNCIL so AS TO ASSURE THAT MOST ESSENTIAL INDUSTRIES AND PUBLIC 29\n30\nSERVICES WILL BE GIVEN FIRST CLAIM ON FUNDS AND TRANSPORTATION\n31\nAVAILABLE FOR PURCHASES OF SUCH GOODS, COUNCIL SHOULD GIVE GUID-\n32\n33\nANCE TO INDUSTRY IN PRODUCING GOODS WHICH HAVE ASSURED MARKETS IN\n34\nCHINA OR ABROAD, AND IN ELIMINATING UNSOUND PRODUCTION. INTEREST\n35\n36\nRATES AND LOAN POLICIES OF CHINA'S BANKS MUST BE REEXAMINED AND\n37\nRESHAPED TO ENCOURAGE INDUSTRIAL PRODUCTION.\" (4) EXPANDING\n38\n39\nFOREIGN TRADE FOR CHINASX QQMCTS1S* SHOULD BE A MAJOR ELEMENT IN\n40\nOUR ACTIVITIES. COUNCIL SHOULD PROMPTLY ESTABLISH A PROGRAM TO\n41\n42\nENCOURAGE AND ASSIST WITHIN CHINA PRODUCTION OF AGRICULTURAL AND\n43\nINDUSTRIAL PRODUCTS WHICH ARE WANTED IN FOREIGN MARKETS WHEREVER\n44\n45\nTHIS CAN BE DONE WITHOUT DEPRIVING THE CHINESE ECONOMY OF\n46\nESSENTIAL COMMODITIES AND WITHOUT EXPOLITATION OF LOW COST LABOR\n47\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-1 OR CHARTROOM.\nNo. 4 SPECIAL. 50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\" instructions contained in Article 76, Navy Regulations.\nCOPY NO.\n241420\nOPNAV 19-78\nTO\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nASTERISK (*) MAILGRAM ADDRESSEE\nFROM\nEDWIN A LOCKE JR\n1\nPRIORITY\n2\n3\nROUTINE\nRELEASED BY\n4\nDATE\nARCHIVES.ARG U.S. $. CURDS TRUMAM LIBRARY\nFOR ACTION\nTHE PRESIDENT\nDEFERRED\n5\nBASEGRAM\n6\nSERVICE\"\nDECLASSIFIED by authority of\n7\nTOR CODEROOM\nGOVERNMENT\nDEPT. OF COMMERCE\n8\nLTR TO NARV 11-15-72\nPRIORITY\n9\nDECODED BY\nMEMO FROM NL To\nPARAPHRASED\nCHECKED\nINFORMATION\n10\nNLT 4-12-73\nROUTINE\n11\nBY\nBY\nInitials BKZ Date 5/21/74\nDEFERRED\n12\nDITTOED\nBASEGRAM\n13\nROUTED BY\nBY\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFERRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL 15\nPAGE 8 OF 9\nCHECK BELOW\n241420\nNCR 1568\n16\n17\n18\nOriginator till in DATE AND TIME GROUP\n(Use G. C. T.) 19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\nIN CHINA, THROUGH SALE OF HER PRODUCTS ABROAD CHINA CAN OBTAIN\n22\nFOREIGN EXCHANGE WITH WHICH TO BUY MUCH OF THE NEEDED MACHINERY\n23\n24\nEQUIPMENT AND MATERIALS WHICH SHE CANNOT AS YET PRODUCE HERSELF.\"\n25\n15) PROGRAMS FOR IMPROVED STANDARDS OF HEALTH HOUSING FREE PUBLIC 26 27\nEDUCATION AND OTHER ELEMENTS NECESSARY TO PROVIDE STRONG SOCIAL BASE 28\nFOR ECONOMIC ACTIVITIES OF PEOPLE (6) AN IMMEDIATE START ON\n30\n31\nFORMULATING A REALISTIC 5 YEAR PROGRAM OF ECONOMIC DEVELOPMENT\n32\nGIVING PARTICULAR STRESS TO LONG RANGE IMPORTANCE OF HARNESSING\n33\n34\nCHINA'S RIVERS WITH A VIEW TO FLOOD CONTROL RIVER NAVIGATION AND\n35\nCHEAP ELECTRIC POWER.\n36\n37\nSOONG INFORMS ME THAT ON NOV 27 IN LINE WITH ABOVE STATEMENT GOVT\n38\nWILL ANNOUNCE LIFTING OF CERTAIN WART IME CONTROLS NOW HAMPERING 1\n39\n40\nINDUSTRY AND FOREIGN TRADE.\n41\n42\nI BELIEVE THAT ESTABLISHMENT OF SUPREME ECONOMIC COUNCIL IS A STEP 43\nMAKING FOR CLOSER ECONOMIC COOPERATION BETWEEN CHINA AND THE\n44\n45\nUNITED STATES, IT CAN BE A SIGNIFICANT STEP, IF PROPERLY\n46\nFOLLOWED UP BY CHINESE GOVT AND WILL MAKE POSSIBLE EFFECTIVE\n47\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-I OR CHARTROOM.\nNo. 4 SPECIAL. 50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\" instrue 241420 ained in Article 76, Navy Regulations.\nCOPY NO.\nOPNAV 19-78\nSECRET DISPATCH\nDRAFTER\nEXT.\nADDRESSEES\nPRECEDENCE\nEDWIN A LOCKE JR\nASTERISK (*) MAILGRAM ADDRESSEE\n1\nFROM\nPRIORITY\n2\n3\nROUTINE\nRELEASED BY\nFOR ACTION\n4\nTRUMAN\nTHE PRESIDENT\nDEFERRED\n5\nDATE\nNATIONAL\nARCHIVES AND\nLIBRARY\nBASEGRAM\n6\nRECORDS\nDECLASSIFIED by authority of\n7\nTOR CODEROOM\nU.S.\nSERVICE\"\nDEPT. OF COMMERCE\nGOVERNMENT\n8\nLTR. TO NARV 11.15.72\nMEMO FROM NL TO\nPRIORITY\n9\nDECODED BY\nINFORMATION\nNLT 4-12-73\n10\nROUTINE\nPARAPHRASED\nCHECKED\nInitials BKZ0105/21/74 BKZ 5/21/74\n11\nBY\nBY\nDEFERRED\n12\nDITTOED\nBASEGRAM\n13\nROUTED BY\nBY\n14\nUNLESS OTHERWISE INDICATED THIS DISPATCH WILL BE TRANSMITTED WITH DEFERRED PRECEDENCE AND AS ADMINISTRATIVE.\nIF OPERATIONAL 15\nRPAGE 9 OF 9\nNCR 1568\nCHECK BELOW\n241420\n16\n17\n18\nOriginator till in DATE AND TIME GROUP\n(Use G. C. T.) 19\nON OUTGOING DISPATCHES PLEASE LEAVE ABOUT ONE INCH CLEAR SPACE BEFORE BEGINNING TEXT\n20\n21\n22\nUTILIZATION OF AMERICAN INDUSTRIAL EXPERIENCE. SINCE IN ADDITION\n23\nI HAVE NOW OBTAINED ANDADEQUATE FIRST HAND PICTURE OF ECONOMIC\n24\n25\nCONDITIONS HERE AND SINCE AMERICAN PRODUCTION MISSION IS NOW\n26\nCOMPLETELY LIQUIDATED I FEEL THAT I SHOULD LEAVE CHINA PROMPELY.\n27\n28\nI HAVE AGREED TO REMAIN IN CHUNGKING UNTIL AFTER FIRST MEETING OF 29\nSUPREME ECONOMIC COUNCIL ON NOV 26 BUT HAVE DECLINED TO PARTICI-\n30\n31\nPATE IN IT PERSONALLY AS I FEEL THAT THIS SHOULD BE AN EXCLUSIVELY\n32\nCHINESE AFFAIR.\n33\n34\nI BELIEVE I SHOULD REPORT FULL SITUATION IN CHINA TO YOU PERSON-\n35\nALLY BEFORE DECISION IS REACHED AS TO POSSIBLE VISITS BY ME TO\n36\n37\nOTHER CAPITALS ACCORDINGLY UNLESS YOU HAVE OTHER INSTRUCTIONS FOR 38\nME MY PRESENT PLANS ARE TO LEAVE CHUNGKING ON EVENING OF NOV 26\n39\n40\nAND RETURN DIRECTLY TO WASHINGTON.\n41\n42\n43\nDELAYED DUE TO SERVICING\n1 *AS RECEIVED\n44\n45\n46\n47\n48\n49\nNo. I ADMIRAL.\nNo. 2 FILE.\nNo. 3F-1 OR CHARTROOM.\nNo. 4 SPECIAL. 50\n51\nTOP\nSECRET\n52\nHandle only in accordance with \"Top Secret\" instructions 241420 contained in Article 76, Navy Regulations.\nCOPY NO.\nOPNAV 19-78"
}