Office of the Historian

893.154/367: Telegram

The Ambassador in China (Gauss) to the Secretary of State

Chungking, August 24, 1941—noon.
[Received 1:25 p.m.]

363. Reference Department’s 194, August 21, 7 p.m. regarding Burma Road.

1.
Arnstein and party left Chungking 22d for Hong Kong en route to the United States before receipt of your message.
2.
By Embassy’s 360 of August 21, 3 p.m. Arnstein informed Currie of contemplated plan which was accepted at final meeting of Arnstein group with the Generalissimo when the Naval Attaché was also present. Name of Holmes was not again presented. Arnstein declined appointment as managing director, he and his colleagues indicating they must return to the United States. Wilson’s appointment depends upon the attitude of the War Department. Chinese managing director will be General Yu Fei-peng who is now Chairman of the Yunnan–Burma Highway Supervisory Commission of which Baker is Inspector General. It is [not?] possible to assess the new setup until after it has commenced functioning. It does not on its face differ essentially from that which has been in effect for the past several months. The spirit and determination [shown?] where it attacks the problem will be the guage of its success.
3.
While the Generalissimo has repeatedly indicated his desire to appoint an American managing director, I understand that he considers it impracticable for a foreigner to exercise the full authority contemplated in the Arnstein report.
4.
The new plan should so operate as to place full responsibility on the Chinese and at the same time afford them the expert American technical and mechanical assistance they require for efficient operation of the road. Centralization of authority over the road, in hands that are willing and able to establish needed police controls and to subordinate provincial and private vested interests to the national welfare, is imperative if American technical assistance is to be effective and if aid to China under Lend-Lease is to materialize as anticipated.
5.
I believe that the Chinese Government should be authoritatively informed that the extent of Lend-Lease aid to China depends upon the tonnage which can be moved over the road and that, while we are prepared to make available all practicable assistance, solution of the road transport problem is China’s full responsibility.
6.
The Naval Attaché concurs in general with the foregoing. Lattimore83 has not indicated to me that he has been informed or consulted regarding the Burma Road.
Gauss
  1. On September 25 Mr. Alger Hiss, Assistant to the Adviser on Political Relations, commented to Dr. Hornbeck, in another connection, that “Currie has recently expressed to me the view that the Department should be on the alert to help maintain Lattimore’s prestige. He suspects that Lattimore’s relations with Gauss are none too good and apparently feels that it is unfortunate that it has not been possible to act on any of Lattimore’s recent suggestions. Currie says that as a result Chiang Kai Shek has decided that Lattimore is without influence with the U. S. Gov[ernmen]t and that this undermines Lattimore’s influence with Chiang. A. H.” (893.01A/169)↩