Oct. 13, 1947 CHINA-CLAIMS Ot. 17, 194 Mar. 17, 1948 of American Graves Registration Service and Air Transport Com- mand. Within these organizations there is, at the present time, suffi- cient personnel to adequately process new claims as they develop. For these reasons the bases for General Wedemeyer's proposal ap- pear to exist no longer. The classification of claims as to type men- tioned in the Ministry's note of May 8, 1947 would not seem to be applicable under conditions now obtaining. The offer of the Chinese Government to assume the responsibility for investigation and disposition of such indemnity cases is appreciated. Neverthe- less, in view of the change in circumstances further consideration of the matter is suggested. As an alternative, it is proposed that claims against the United States within the scope of the Foreign Claims Act and similar pertinent acts of Congress arising out of the activities of the United States Army, Navy and Air Forces in China be processed by Army, Navy or Air Force agencies in the same manner as is now being done under Army and Navy regulations. With the exception of the classifications to be discussed hereinafter, it is intended that the indemnities awarded by said agencies be paid from United States funds. The exceptions referred to are: A. Claims by or on behalf of individuals assigned to work for the Naval Advisory Group Survey Board or Army Advisory Group (in- cluding the Air Forces) whose salary is paid by or from Chinese funds, and whose claims are based upon an illness, injury, incident or accident arising in the course of such employment. B. Claims for damages for injury to person or property by or on behalf of any firm or corporation, or person who does not come within the purview of the last preceding paragraph (A), whose claims are based upon an accident or incident arising out of the activities of the Naval Advisory Group Survey Board or Army Advisory Group. With respect to the two classes of claims last mentioned (paragraphs A and B), it is proposed that the indemnities awarded claimants by agencies of the United States Army, Navy or Air Forces, be paid from the Nanking Revolving Fund or other funds of the Republic of China which will be made available for this purpose by the Chinese Government. These proposals, of course, relate to claims other than those arising from procurement or any other contracts and are limited generally to the kind of claims mentioned in the fifth paragraph hereof. The Embassy suggests that the Ministry make known its views as to the principles herein set forth. If the Government of the Republic of China agrees with these principles, it is further suggested that the de- tails of the administration thereof be agreed upon by and between the Ministry of National Defense and the Chief, Army Advisory Group, and the Senior Member of the Naval Advisory Group Survey Board, or their duly authorized representatives. NANKING, October 13, 1947 W.T.T . Process of claims within scope of desig- nated Acts of Congress. 66 Stat. 880. 31 U. S. C. §224d et seq. Payment of indem- nities. 2117 62 STAT.]
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