893.50/341: Telegram

The Ambassador in China (Gauss) to the Secretary of State

1860. Chinese Government’s highly developed interest in postwar reconstruction, which we have previously discussed, is reflected anew in current reports that a special branch of the Government, possibly a new Yuan, is to be established for purpose of formulating and putting into effect definite plans for postwar reconstruction in China. According to some sources, T. V. Soong who is expected to reach Chungking by end of this week may head the new organization, at least nominally (it seems to be generally believed that he will not relinquish his post as Foreign Minister or remain for an extended time in Chungking). Part of plan if put into effect will assumably include (as it apparently already has in the past) obtaining Lend-Lease supplies having postwar utility.