78 Department of External Affairs to Embassy in Washington

Cablegram 1313 CANBERRA, 12 November 1947

SECRET

Your 1490-UNRRA CHINA PROGRAMME.

We would agree to suggested compromise whereby China would set up a Rehabilitation Commission and Board of Trustees without nominated international representatives but dependent for funds of Chinese and foreign currency on the C.C.F.E. You should also press for further consideration to be given to E.C.A.F.E. taking over U.N.R.R.A. functions relating to China long term projects. This would give necessary international supervision of projects and would assist creation of prestige for Commission.

On distribution to Communists you should maintain previous position and insist upon continuance of impounding and storage except where perishable and similar goods are concerned.

[AA : A1068, R47/3/2]