Foreign Relations of the United States, Diplomatic Papers, 1941, The Far East, Volume V

803.24/11435/11: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

London, September 7, 1941—6 p.m.
[Received September 7—2:25 p.m.]

4131. Department’s 3017, August 7, 8 p.m. The Foreign Office states Burmese transit duties have been abolished on all Lend-Lease goods for China landed in Rangoon after September 3, 1941. An announcement to this effect will be made by the Government of Burma on Tuesday September 9 and the Department is requested to keep the information confidential until then.

The Far Eastern Department of the Foreign Office explained that to compensate in part for loss of transit duties the British Government has agreed to pay the Government of Burma 10 rupees a ton on Lend-Lease goods, which will cover administrative expenses in connection with the shipments, including upkeep of the road and payment of guards beyond the railhead. Considering all the facts and in view of its internal political and economic problems they feel that the Burmese Government has shown a reasonable attitude towards this question. They therefore read with regret a recent press despatch from Chungking quoting remarks which Currie is alleged to have made⁹⁶ disparaging to the Government of Burma.

The Foreign Office is disturbed because the road through China is unable to carry the increasing volume of traffic, and thinks that the unsatisfactory volume is due as much to Chinese inefficiency as to Japanese bombs. The British would, therefore, welcome and support a control commission with executive authority in American hands.

Following the abolition of the transit duties, better identification of Lend-Lease shipments arriving in Burma is desired. Details will be communicated to the Department through the British Embassy in Washington.⁹⁷

Winant

96. In telegram No. 3867, September 17, 8 p.m., the Department asked the Ambassador in the United Kingdom to inform the appropriate British authorities that the remarks under reference were not made by Dr. Lauchlin Currie. The Department, while in no way admitting the remarks to have been disparaging to the Government of Burma, suggested that they might be attributed to one of the American traffic experts making up the Arnstein group.
97. Following further consultations on this subject during September, about October 1 the Department informed the British Embassy that instructions had been issued by the appropriate agencies of the United States Government with regard to the marking of lend-lease packages and the preparation of separate manifests and requested that the interested British agencies be so informed (893.24/1181; also 893.24/1143 ⁷⁄₁₁–⁹⁄₁₁).