893.24/1627: Telegram
The Secretary of State to the Ambassador in China (Gauss)
Washington, October 8,
1943—11 p.m.
1449. Department’s 990, July 30, 6 p.m. and final paragraph Embassy’s 1794, September 24, 10 a.m.,50 in regard to reverse Lend-Lease.
- 1.
- Department has been informed by War Department that General Stilwell in recent message expressed agreement in principle with reverse Lend-Lease plan but stressed that pay of Army personnel represents only very small percentage (about 2 percent) of the total monthly expenditures of US forces in China and that principal problem is procurement of materials and labor required to meet military needs.
- 2.
- In view of the fact that War Department’s attitude on this question is largely determined by military requirements of US forces in [Page 567] China it is suggested that the Embassy discuss this whole problem with General Stilwell’s headquarters with a view to reaching an understanding with Stilwell on financial and matériel requirements of forces under his command which might be included under proposed reverse Lend-Lease.
- 3.
- Department further suggests that following an understanding with General Stilwell on this question you call on Dr. T. V. Soong, who while in Washington expressed himself as being in favor of reverse Lend-Lease (Department’s 637, May 19, 9 p.m.),51 and discuss matter with him in the light of the specific needs of our armed forces in connection with the prosecution of hostilities in China against the Japanese and the increasing financial difficulties being experienced by our civilian representatives in China.
Hull