893.51/7467
The Chinese Minister for Foreign Affairs (Soong) to the Under Secretary of the Treasury (Bell)13
Dear Mr. Bell: Confirming our conversation, I have to inform you that I have received a reply from the Generalissimo with reference to your proposal to re-insert Article II of the proposed loan agreement in a modified form.
The Generalissimo states that after carefully consulting his colleagues he feels that even in the modified form Article II is generally construed as limiting the freedom of action in the use of the proceeds, and would therefore adversely affect the public response to bonds, savings deposits and other measures that are to be based on the loan.
In addition, among his soldiers, who have been tremendously heartened by the generous and unconditional assistance as revealed in the exchange of messages between the President and himself, the inclusion of Article II would create the impression that the terms are not as clear-cut as they envisaged.
The Generalissimo therefore feels that the civilian and military reactions are such as to justify his request that Article II be dropped completely, and I shall be grateful if you will transmit his message to your colleagues for their consideration.
With kind regards [etc.]
- Copy received in the Department on March 19.↩