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.