The Acting Secretary of State to the Chargé in China (Vincent)
313. Embassy’s 127, January 23, 11 a.m. Reference question of Reverse Lend Lease. There is being forwarded to you by air mail [Page 529] draft of the proposed exchange of notes between this Government and the Chinese Government on reciprocal aid. Copies of the draft are on their way to General Stilwell in as much as the War Department wishes to make sure that the draft is satisfactory to him. War Department has instructed General Stilwell to furnish you a copy.
The draft agreement contains reservations which, it is believed, will prove satisfactory to General Stilwell. Provision is also made for advances in Chinese currency to meet essential United States governmental as well as military needs.
Several agencies of this Government have already signified their approval of the draft and the approval of other interested agencies is being sought.
The Department will be glad to receive any additional information you may have received regarding this matter as well as any comments you may care to make when you receive a copy of the draft agreement.