File No. 763.72/8372b
The Secretary of State to the Ambassador in Great Britain ( Page )
6119. For Crosby from the Secretary of the Treasury:
Treasury No. 39. Chinese Government has offered to send troops to Europe. War Department is entirely in accord with the project provided the troops are organized as engineer corps and quartermaster corps under the leadership of a Chinese general officer and ordered to report to Pershing. The troops are to be available for second line and rear duty and 10 per cent of them to be armed as they pass through America. For this purpose the Chinese Government has requested a loan. The cost estimated by the War College for one year including equipment, transportation, rations and pay will be about $30,000,000. It is now proposed to make the Chinese Government a loan in the form of credits in the sum of $50,000,000, of which $30,000,000 or as much thereof as may be immediately necessary shall be immediately available for the purpose suggested. You are instructed to lay the matter before the Inter-Allied Council and to ask their cooperation and urge its adoption. The French Government has advised the Department of State that they approve. The British Government has expressed the hope that we would not interfere with their supply of coolie labor from China. You will please keep this fact in mind in considering the British attitude toward the proposal. The Japanese Government have said they would be glad to help transport them. Please report thereon as soon as possible.
You are instructed that this Department of State is fully in sympathy with the above project.