893.24/1673
Memorandum of Conversation, by Mr. Alger Hiss, Assistant to the Adviser on Political Relations (Hornbeck)
Subject: Reverse Lend-Lease Discussion With China
After discussing the matter with Mr. Stanton, I telephoned Colonel Foster in order to call his attention to the latest communication we have had from Chungking on the above subject, namely, Mr. Gauss’ telegram 2085 of November 5, 2 p.m. I told Colonel Foster that the Department had already sent a paraphrase of this telegram to the War Department and suggested that if he had not yet obtained a copy I thought he would wish to take steps with the War Department’s liaison officers in order to get a copy. I then summarized the substance of the telegram and stressed the fact that Mr. Gauss now suggests that we consider making a formal approach in precise terms.
Colonel Foster asked me if I had heard any reports as to General Somervell’s statements on this subject since he has returned to Washington. I said that I had not. Colonel Foster said that he has not yet seen General Somervell, but that he has been working on the matter continuously for the past few days, and that he hoped—on the basis of General Somervell’s views—to have something concrete within a short time. He went on to say that he was rather surprised at the somewhat discouraging tone of Mr. Gauss’ telegram of November 5 in view of [Page 573] the fact that he understood that General Somervell, according to those who have talked to the General since he returned to Washington, feels rather encouraged that something satisfactory can be worked out with the Chinese on this subject.
I replied that in the absence of knowledge as to General Somervell’s exact views and particularly in the absence of knowledge of what various Chinese officials may have said to General Somervell who had, we understood, conversations in Chungking at which Mr. Gauss was not present, we were in no position to comment on General Somervell’s optimism. I said that on the basis of our information we do not feel warranted in being over-optimistic but that nonetheless we thought a further approach would be wise. I asked Colonel Foster please to take steps to communicate the War Department’s views on this matter in writing and in precise terms so that we could take up with O.L.L.A. and Treasury the question of making a new concrete approach to the Chinese. Colonel Foster said that he would be glad to take steps to this end. I emphasized the fact that since Lend-Lease agreements are primarily designed to facilitate military operations the views of the War Department are of particular importance and that under the circumstances we would take no action until we heard from the War Department. Colonel Foster agreed that the initiative in this matter now lies with the War Department who can be expected to communicate their views to us in the near future.