Foreign Relations of the United States: Diplomatic Papers, 1943, China

893.24/15945

Draft Note From the Chinese Minister for Foreign Affairs ( Soong ) to the Secretary of State ²⁸

undated

Sir: In the United Nations declaration of January 1, 1942, the contracting governments pledged themselves to employ their full resources, military and economic, against those nations with which they are at war; and in the agreement of June 2, 1942 the Government of the Republic of China and the Government of the United States undertook to provide each other with such articles, services, facilities or information useful in the prosecution of their common war undertaking as each might be in a position to supply. It is further the understanding of the Government of the Republic of China that the general principle to be followed in providing mutual aid as set forth in the said Agreement of June 2, 1942 is that the war production and the war resources of both Nations should be used by the armed forces of each and of the other United Nations in ways which most effectively utilize the available materials, manpower, production facilities and shipping space.

With a view to supplementing Article 2 and Article 6 of the Agreement of June 2, 1942 between our two Governments for the provision of reciprocal aid, I have the honor to set forth below the understanding of the Government of the Republic of China of the principles and procedures applicable to the provision of aid by the Government of the Republic of China to the United States and the manner in which such aid will be correlated with the maintenance of its forces and establishments by the United States Government.

1. While each Government retains the right of final decision, in the light of its own potentialities and responsibilities, decisions as to the most effective use of resources shall, so far as possible, be made in common, pursuant to common plans for winning the war.

2. The Government of the Republic of China will provide the United States, its armed forcees and establishments with the following types of assistance as reciprocal aid, when it is found that they can most effectively be procured from the Republic of China:

(a) Military equipment, munitions, and military and naval stores.

(b) Other supplies, materials, facilities and services, including financial services, for the United States forces, and other official United States establishments in China, except for such purchases as those forces and establishments may make pursuant to clause (d) below, or apart from the arrangements covered by this agreement.

(c) Supplies, materials and services needed in the construction of military projects, tasks and similar capital works required for the common war effort to the extent that the Republic of China is a more practicable source of supply than the United States or another of the United Nations.

(d) To enable the United States authorities, where they deem it advisable, to obtain supplies, materials, facilities and services such as those specified under items (a), (b) and (c) above by direct purchases, and to meet other essential United States governmental and military needs for Chinese currency, the Government of the Republic of China will provide funds of its currency, in amounts and at intervals to be mutually agreed upon, to the duly authorized authorities of the United States.

3. The practical application of the principles formulated in this note, including the procedure by which requests for aid by either Government are made and acted upon, shall be worked out as occasion may require by agreement between the two Governments, acting through their appropriate military or civilian administrative authorities. Requests by the United States Government for such aid will be presented by duly authorized authorities of the United States to official agencies of the Republic of China which will be designated or established in Chungking and in the areas where United States forces are located for the purpose of facilitating the provision of reciprocal aid.

4. It is the understanding of the Government of the Republic of China that all such aid, as well as other aid, including information, received under Article 6 of the Agreement of June 2, 1942, accepted by the President of the United States or his authorized representatives from the Government of the Republic of China will be received as a benefit to the United States under the Act of March 11, 1941. In so far as circumstances will permit, appropriate record of aid received under this arrangement will be kept by each Government.

If the Government of the United States concurs in the foregoing, I would suggest that the present note and your reply to that effect be regarded as placing on record the understanding of our two Governments in this matter.

I have the honor to be, etc. etc.

28. Prepared in the Department and handed to Dr. Soong by the Assistant Secretary of State (Acheson) on May 15; see memorandum of conversation, supra.