893.24/1688

Memorandum by the Assistant Chief of the Division of Far Eastern Affairs (Vincent) to the Assistant Secretary of State (Acheson)28

Mr. Acheson: At the meeting held in your office on September 8, attended by Mr. Van Buskirk29 and Mr. Ray of Lend-Lease and Mr. Hiss, Mr. Kermit Roosevelt30 and myself, you will recall that there was some discussion of the political considerations involved in the proposals made by Mr. Van Buskirk and Mr. Ray for placing our program for Lend-Lease aid to China on a more stable and effective basis. Mr. Van Buskirk’s proposal that Lend-Lease for China be placed upon a contractual basis analogous to the protocol we have with the U.S.S.E. was discussed but it seemed to be the consensus of those present that a protocol for China Lend-Lease was not advisable. The point was made that an attempt at this time to fix Lend-Lease aid for China in a protocol might result in dissatisfaction on the part of the Chinese in as much as the aid that could be promised on a contractual basis would probably fall below present Chinese expectations.

Mr. Ray then suggested formation of a committee of ranking officials whose duty it would be to review Lend-Lease aid for China in the light of such factors as transportation facilities to China, priorities, aid from other sources, requirements of our own military authorities, and political considerations bearing upon our relations with China, and on the basis thereof to reach conclusive decisions. The committee would include officials of the State and War Departments and of Lend-Lease, possibly under the chairmanship of Mr. Hopkins.31

The discussion developed the point that Lend-Lease had encountered and was encountering considerable difficulty in obtaining clearance for specific items of Lend-Lease aid to China through the War Department; that in numerous instances it was necessary, in order to overcome War Department opposition regarding items which Lend-Lease was already committed to furnish China, to submit the cases to Mr. Hopkins for decision. The purpose of the proposed committee would be to act somewhat as an advance clearing house for a program of Lend-Lease aid to China. It was felt that it might be possible to have the War Department committed in advance [Page 506] to a schedule of aid to China which would simplify the problems of Lend-Lease.

It is recalled that during the discussion you expressed the opinion that one of the primary functions, if not the principal function, of the proposed committee would be to weigh political considerations against military and related considerations and, where there was a conflict, to make decisions which, while taking into account the attitude of the War Department, would be based upon broad policy.

It is believed that a continuance, and when possible an augmentation, of Lend-Lease aid to China along the lines of the program worked out by Lend-Lease is good policy. The amount involved is not of sufficient magnitude, it seems, to prove an embarrassment to our own military program. It is admitted that, until broader avenues of approach to China can be opened, the amount of Lend-Lease we can send to China will not have a substantial material effect upon the existing situation in China. However, the psychological effect of continued aid to China is important and worthwhile (the psychological effect of a reduction in Lend-Lease aid to China would be distinctly adverse). The economic situation in China is admittedly grave. Chinese confidence in our willingness to aid China in every way practicable goes a long way toward bolstering Chinese morale on the political and military fronts as well as on the economic front.

It is believed that the political considerations involved in our Lend-Lease aid to China are of sufficient importance to warrant the active support of this Department in furthering any sound proposal which the Office of Lend-Lease may advocate to maintain and augment the procurement of supplies for China. The suggested committee to review and make conclusive decisions with regard to Lend-Lease aid to China appears to be a sound proposal and to be deserving of support by the Department.

  1. Initialed by Mr. Laurence E. Salisbury, an Assistant Chief of the same Division, and concurred in by the Adviser on Political Relations (Hornbeck).
  2. Arthur B. Van Buskirk, Deputy Lend-Lease Administrator.
  3. Assistant to the Assistant Secretary of State (Acheson).
  4. Harry L. Hopkins, Special Assistant to President Roosevelt and Chairman of Munitions Assignments Board, United States and Great Britain.