MEETING OF SCC AD HOC WORKING GROUP ON CHINA, 28 FEBRUARY 1979 AT 1000 HOURS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83B00100R000300100005-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 27, 2016
• Document Release Date: June 25, 2012
• Sequence Number: 5
• Publication Date: March 1, 1979
• Content Type: MFR

Declassified in Part - Sanitized Copy Approved for Release 2012/06/25 : CIA-RDP83B00100R000300100005-8
?AC No. 1063-79
MEMORANDUM FOR THE RECORD
FROM: John H. Holdridge
National Intelligence Officer for China
SUBJECT: Meeting of SCC Ad Hoc Working Group on China,
28 February 1979 at 1000 hours
1. The meeting convened in the White House Situation
Room under the chairmanship of David Aaron. Also present were
representatives of the NSC (Oksenberg), State (EA and Con-
gressional Relations Bureaus), the White House (Congressional
Relations), Defense (ISA and JCS), and CIA (DDO and NFAC).
Purpose of the meeting was to consider the situation on
Taiwan and in the US created by the failure of Senator Hol-
lings to change his position against reprogramming of State
funds to support the American Institution on Taiwan (AIT).
(It will be recalled that in the memo covering the 23 February
Working Group meeting, I noted that Deputy Assistant Secretary
Sullivan felt confident Hollings would drop his opposition to
reprogramming; this, in fact, has not occurred.
2. It was noted that Hollings was willing to consider
reprogramming once the omnibus legislation setting up the AIT
passed the Senate, but would not move until after the legis-
lation received action on the floor -- this despite a tele-
phone call from the President to Hollings. Senatory Byrd
would try to move the omnibus legislation forward quickly,
but it would not reach the Senate floor before Monday, 5 March,
nor in all probability be passed by the Senate until the fol-
lowing week at the earliest.
3. There was some discussion of the feasibility of
going ahead with reprogramming without Senatorial authority,
since this was possible under existing legislation if no op-
position was voiced by Congress within 15 days. Although Aaron
J L V
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J B U it C 1 ?
was initially inclined to proceed in this manner and to make
it clear that Congress was responsible due to its interference
in the President's foreign policy role, the decision was made
not to do so. The White House Congressional Relations repre-
sentative pointed out that the Administration had for years
been fighting off Congressional efforts to intrude into the
reprogramming area with restrictive legislation, and while we
might succeed with respect to the AIT, we might find our
hands tied in future situations.
4. Sullivan (State) reported that in the meantime the
Embassy on Taiwan had closed down, and was no longer able to
perform any functions for the public. Some apprehensions
were expressed that this closure might result in anti-US
riots on Taiwan which would be blamed on the President's
policies. However, the consensus was that the risk of riots
was very low based on the fact that martial law is in effect,
civil distrubances could thus be kept under control, and the
Taiwan leadership appeared to have accepted the switch from
official to unofficial relations.
5. The fact was noted that despite inability on the US
side to open the AIT, Taiwan's unofficial organization would
open in Washington as scheduled on March 1. A number of
functions involving US-Taiwan could therefore be carried on
via contact between Taiwan's unofficial representatives here
and David Dean, head of the AIT in Washington. The question
was considered whether we would want to sign LOA's for mili-
tary sales to Taiwan through this channel, but it was decided
not to do so on the grounds that a temporary cut-off in mili-
tary sales and shipments might put pressure on Taiwan to in
turn put pressure on elements in Congress in favor of reprogram-
ming. (In this respect, Sullivan mentioned that he had ex-
plained the particular problem we faced on arms shipments to
the Taiwan representatives the preceeding evening and had
been told that "they would get on it right away.") Legally
speaking, however, it was feasible to sign LOA's prior to
passage of the AIT legislation on the basis of the President's
memorandum of 1 January declaring that for purposes of main-
taining a continuing relationship with the people on Taiwan we
would treat Taiwan "as a country." By waiting for the legisla-
tion to pass, the onus. for a hiatus in US-Taiwan relations
would rest clearly with Congress.
6. Considerable discussion then ensued on the desir-
ability on issuing a statement describing our inability to
2
S E C R E T
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? J h L K b l ?
open the AIT, placing the blame on those elements in Congress
responsible for the situation, namely Hollings and the members
of his committee, and indicating the kinds of public services
which we could not now perform on Taiwan. It was ultimately
decided that use could be made of a friendly newsman on the
Hill to bring the situation to public attention, with Sulli-
van prepared to provide background information on curtailment
of services in response to any follow-up questions by the press.
Pending information on the outcome of a telephone call by
Senator Byrd to Hollings (now vacationing in Florida) to get
Hollings to move, no effort would be made to depict him as
the villain in the piece. It was observed that we want to be
careful not to stir up Congressional sensitivities too much,
since Congress in general was being reasonably supportive of
the President's normalization policy. The Woodcock nomination,
for example, passed the Senate by 82 to 9.
7. It was further decided that in our public comments
on the AIT problem we would say we would do our best to main-
tain relations with Taiwan through what channels were avail-
We would, nevertheless, make
it plain the kinds of things we had hoped to do for American
25X1
25X1
business interests and the American and Taiwan people in general
would have to be suspended, with visa issuances shifted to
nearby centers such as Hong Kong, Tokyo and Manila. Conceiv-
ably the absence of services to American business might result 25X1
in added pressure being placed on Congress to move.
3
S E C R E T
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9. Attached is a clipping from The Washington Post of
March 1 reporting the AIT issue.
Attachment:
Newspaper item
Distribution:
Orig. - File, w/att.
1 - DCI, w/att.
1 - DDCI, w/att.
1 - Ex. Reg., w/att.
1 - D/NFAC, w/att.
1 - NSC Coord., w/att.
1 - DDO, w/att.
1 - Chief, EA, w/att.
1 - DCEA/CO, w/att.
1 - CEA/TP, w/att.
1 - NIO/CH, w/att.
1 - NFAC Reg., w/att.
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THE WASHINGTON POST Thursday, March 1,1979 A 13
Legal 'Snarl Funding Disute. Result
In Severed Taiwan Ties---for Now
By Robert G. Kaiser an American couit or otherwise enjoy "resign", from the Foreign Service to
Washington Post staff writer the protection of the U.S. government. work in the new, institute, once it is
Because of legal complications and ' Also, there will be no one on Tai- established-will remain in Taiwan
a squabble with Congress, the United wan who can issue visas to Taiwanese and stay on the Foreign Service pay-
States today has no official tie to the roll
Republic of China on Taiwan. and no or other foreigners to visit the United
office on Taiwan to serve the 5,000 States. Even expeditious action by In another China development, the
Americans there. Congress to satisfy Hollings' com- first U.S. ambassador to the People's
Republic, Leonard Woodcock, was
This is apparently the most signifi- plaints will not rectify this situation sworn in yesterday. Woodcock was .
cant practical consequence of the for- for at least two to three wEeks, admin- confirmed by the Senate Monday, too
mal opening today of full diplomatic istration sources said yesterday. late to reach Peking for today's offi-
relations with the People's' Republic The administration telieves all this cial opening of relations.
of China. Beginning today, the Ameri- could have been avoided if Hollings .. At his swearing-in ceremony, Wood-
can and Chinese "liaison offices" in and his subcommittee colleagues had cock said he hoped to work for "a sta-
Peking ' and Washington are full- anproved a "reprogramming" of State ble East Asia" and help build "a sta-
fledged embassies. Department funds that would- have ble base for peace in the entire
The old U.S. embassy on Taiwan, transferred about $2 million to run world." The Fn-year-old former presi-
however, is closed, and the theoreti- the new institute. dent of the United Auto Workers un-
cally unofficial "institute" that is "This is really irresponsible." one ion has already spent two years in Pe-
meant to conduct U.S.-Taiwanese rela- irate White House official said last king as head of the U.S liaison office.
tions in future cannot open for busi- night of Hollings' attitude. "This is The House Foreign Affairs Commit-
ness because Sen. Ernest F. Hollings one Carter is not going to be blamed tee yesterday gave final approval to
(D-S.C.) has refused .to approve a for." the same source added. its version of legislation establishing
transfer of State Department funds to Administration officials say they the, new legal basis for Taiwanese-
pay for its operations. Hollings is are concerned that irate Taiwanese American relations. The bill must now
chairman of the Appropriations sub- may protest viotently against the clos- be considered by both the House and
committee, which oversees the State ing of the emoassy, or that some seri- Senate.
Department budget. ous legal problems- will arise during The Senate will take up the bill
Hollings, who disapproves of the. this hiatus when the United States Monday and could act on it within a
terms of the Carter administration's will have no official link to the Re- week The administratoin hopes Hol-
decision to "normalize" relations with public of China on Taiwan. lings will allow the institute to open
the People's Republic, said yesterday They say if anything like this oc- soon thereafter.
he thought it was improper to trans- curs, Hollings should take the respon- However, a State Department offi-
fer government funds to the new insti- sibility. cial said last night that it will fake a
tute before Congress has authorized But Hollings declined to take any , week or more to prepare the new
the existence of such an organization. responsibility. He said yesterday that premises of the institute in Taiwan
The fact that the United States the hurry-up effort to establish a new once 'money is authorized.
must close its offices on Taiwan today legal basis for relations with Taiwan
"is not my problem," Hollings said. was entirely the administration's idea.
"It's their problem," he added, refer- [From Taiwan, special correspondent
ring to the administration. ' Michael Kazer reported that U.S. offi-
As a result of the closing of the em- cials there' let it be known several
,bassy on Taiwan, there will be no way days ago that there would. be no Amer-
ican office open for business "for 10
an American there can replace a lost days" beginning today. Embassy offi-
passport, swear a document for use in cials-many of whom will temporarily
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