The Secretary of State to the Chargé in China (Vincent)

No. 250

Sir: With reference to your strictly confidential telegram no. 127, January 23, 11 a.m. and the Department’s no. 313, March 9, 1943, in regard to an agreement covering reciprocal aid, there are enclosed copies of notes17 which it is tentatively proposed should be exchanged between this Government and the Chinese Government on the question of reciprocal aid.

For your information it may be stated that the text of the notes follows closely the phraseology appearing in the agreement for reciprocal aid negotiated with Great Britain.18 However, provision has been made in sections (b) and (d) of Article 2 to meet the needs of both governmental and military establishments of the United States in China. It will be noted that the Government of the Republic of China agrees to provide the United States, its armed forces and establishments with military equipment, munitions, military and naval stores, other supplies, facilities and services, including financial services, “except for such purchases as those forces and establishments may make apart from the arrangements covered by the agreement”. It is believed that this reservation should adequately meet General Stilwell’s stipulations and enable him to make such purchases as he may desire for the American forces in China. Sub-section (d) provides [Page 530] for the advance of funds in Chinese currency to meet “other essential United States governmental and military needs” in amounts and at intervals to be mutually agreed upon. The accounting procedure to be adopted in connection with the Chinese currency provided by the Chinese Government for the needs of the Embassy and other establishments of this Government as well as other administrative matters involved are being considered by the Department.

It is requested that you report by radio any comments or suggestions you may care to make and include any recent indications which may have come to your notice as to the present attitude of the Chinese Government regarding this matter.

Very truly yours,

For the Secretary of State:
Dean Acheson
  1. Neither printed. The first draft note was the same, except for a few minor changes, as that handed to the Chinese Minister for Foreign Affairs on May 15, p. 538. The second draft note was a reply confirming the understanding set forth in the first draft note.
  2. Supplementary agreement effected by exchange of notes signed at Washington, September 3, 1942; Executive Agreement Series No. 270, or 56 Stat. 1605.