Memorandum from Edwin Locke to Matthew Connelly, with Attached Letter from Chiang Kai-Shek to President Harry S. Truman, with Related Material

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NATIONAL GOVERNMENT OF CHINA Chungking, China November 26, 1945 Dear Mr. President: I was very glad to receive your letter of October 3, which was handed to me by your Personal Representative, Mr. Edwin A. Locke, Jr. Your keen personal interest in China's economic reconstruction and development is a source of great gratification to me. Since his arrival Mr. Locke has visited Formosa and South, Central and North China to obtain first-hand knowledge of existing economic conditions and needs. His untiring efforts have made him intimately aware of China's economic problems. As you know, our economic situation here is highly complex. The only basic solution lies in vigorous action toward the early reconstruotion and development of the Chinese economy, including industrial production. The Chinese Government has discussed this subject at length with Mr. Locke, and as an outgrowth of these talks, we have established a new government agency, the Supreme Economic Council. This Council has complete authority over the economic activities of all other agencies of the Govern- ment, and will coordinate the economic adninistration of the Government, with the aim of bringing about an early rise in the living standards of the Chinese people. It is my earnest hope that the Council will make a signifi- cant contribution to China's economic future. I feel that in solving her economic problems China urgently needs American cooperation. I have accordingly consulted on this matter with Mr. Locke and have suggested to him that America send to China an Economic Advisory Mission composed of qualified Americans. It is my own opinion that this Mission should remain in China for some time, and work closely with the newly established Supreme Economic Council. I sincerely trust that America, which has generously aided China in the past, will find it possible to cooperate still further in our economic development, thus establishing an even stronger relationship between our two countries. During the last year, the members of the American Production Mission in China made a, notable contribution to China's war production. We are exceedingly grateful for the aid this Mission gave us; and now that the war is over, I am in full accord with your intention to terminate its work. Mr. Locke's assignments in China have been carried out thoroughly and satisfactorily, and I want to thank you most heartily for your friendly cooperation. At the same time, I should like to take this opportunity to assure you of my earnest desire for our continued mutual understanding and goodwill. Sincerely, 5. a SERVICES Chiang Chung Chang is (Chiang Kai-shek)