124.936/12–944
Memorandum by the Second Secretary of Embassy in China (Boehringer)33
Upon the invitation of General Hurley, a meeting of representatives of U. S. civilian and other agencies at Chungking was held at the Embassy at 10 a.m., December 6, 1944. General Hurley presided over the meeting which was attended by the following:
- Mr. George Atcheson, Jr., Chargé d’Affaires, a. i.
- Colonel M. B. DePass, Jr., Military Attaché
- Captain H. T. Jarrell, Naval Attaché
- Colonel Lee Q. Wasser, Military Air Attaché
- Mr. John D. Sumner, Economic Adviser to the Embassy
- Mr. Carl H. Boehringer, Second Secretary of Embassy
- Lt. Comdr. Phillips Talbot, Assistant Naval Attaché
- Major H. C. Stevens, Representative of OSS
- Mr. Howard Coonley, Deputy Director of Nelson Group
- Mr. James A. Jacobson of the Nelson Group
- Mr. W. T. Stanton, Acting Special Representative of FEA
- Mr. C. N. Joyner, in charge of Lend-Lease Section of FEA
- Mr. F. McCracken Fisher, Director, China Division, OWI
General Hurley stated that this was the first of regular weekly meetings to be held at the Embassy with representatives of various American missions at Chungking. He referred to the agenda for the meeting, copies of which had been distributed to those present, as follows:
- 1.
- Representative of each organization to give brief statement of its mission.
- 2.
- The Embassy will not interfere with any organization whose mission has been defined by constituted authority.
- 3.
- The purpose of the Embassy is to coordinate the missions to prevent overlapping and conflicts.
General Hurley then called upon Mr. Coonley to discuss the work of the Nelson group and the Chinese War Production Board. Mr. Coonley stated that the organic law providing for establishment of the WPB was now up for approval by the Executive Yuan and that body was expected to take appropriate action before the end of the week. Mr. Jacobson made the observation that the law will give the WPB more power than any other Chinese Government agency.
Mr. Coonley stated that the WPB desired to have the Chinese Government set up a single agency to control priorities for movement of cargo from India to China by the China National Aviation Corporation. General Hurley asked whether the CNAC planes had been given to the corporation by the U. S. Government under Lend-Lease. Mr. Stanton stated that four planes were owned outright by CNAC while the remainder (some 24–26 planes) had been supplied under Lend-Lease and were being operated by CNAC under contract with the Service of Supplies of the U. S. Army. He added that technically the planes remained the property of the U. S. Government. General Hurley stated that he desired full details of the exact method of operation, with special reference to profits and distribution of profits by CNAC. Mr. Stanton promised to supply a copy of the CNAC–SOS contract and other information on the subject.
Mr. Jacobson then discussed the procurement of war materials from abroad, stating that there were too many Chinese agencies engaged in that activity. He said that the WPB was now attempting, in concert with FEA, to draw up a complete procurement program for 1945 for reference to Washington. Mr. Jacobson stated further the [Page 204] WPB was attempting to set up an organization for financing war production and that the Nelson group had recommended the establishment of an organization similar to the RFC subsidiary in the U. S. responsible for financing war production. He said that the Nelson group was also recommending the adoption of a stockpiling program, in order to accumulate stocks of such products as alcohol for use when American automotive equipment is moved into free China over the Burma Road.
Mr. Coonley stated that the five steel experts and one alcohol expert attached to the Nelson group had recently completed investigations of local plants and had come to the conclusion that something could be done now to increase war production. He said that several steel experts were going soon to Kunming to see if the Central Machine Works there could undertake large-scale production of mortar shells and that the alcohol expert was of the opinion that production of alcohol could be increased substantially from the present output of about 1,000,000 gallons per month. Mr. Coonley said it was desirable for the WPB to have full details regarding U. S. Army requirements of alcohol and to set up a goal for production. He added that the Nelson group had directed an inquiry to the Service of Supplies, U. S. Army Headquarters here, for a list of items required in 1945.
General Hurley then called on Mr. Sumner. Mr. Sumner stated that he was primarily interested in studying Chinese plans for postwar economic development. Mr. Coonley made the observation that Mr. Nelson had stated to Chinese officials that the amount of interest the United States Government would take in China’s postwar program depended upon what the Chinese did to help themselves in the joint war effort.
General Hurley called on Major Stevens who stated that OSS had a “bundle of missions” assigned to operate in this theater by the Joint Chiefs of Staff, including the following groups: (1) research and analysis; (2) the so-called “SO” group engaged in demolition work; (3) secret intelligence group which focussed its attention primarily on the enemy but also on questionable persons in friendly countries; (4) psychological warfare group which issued so-called “black” propaganda (as opposed to “white” or open propaganda issued by OWI) and which purports to come from the enemy and puppets; and (5) operational groups which, however, have not yet been operating in Chinese territory but which have been active behind enemy lines in Burma. Major Stevens added that OSS operated a network of communications in China and had supplied certain Chinese groups with communications equipment.
[Page 205]Major Stevens stated that all OSS work in this theater was done with the full knowledge and approval of the Theater Commander. General Hurley expressed the opinion that OSS should function directly under the Theater Commander.
Mr. Atcheson described briefly the work of the Embassy.
Mr. Stanton discussed the operations of FEA, stating that they included (1) acquisition of such strategic materials as wolfram, tin, et cetera; (2) screening of Chinese civilian requirements under Lend-Lease; (3) assistance in China’s internal transport; (4) collection and analysis of economic intelligence; (5) disposal of surplus war materials; and (6) general studies of the Chinese postwar economic program. He said that FEA carried on negotiations on Lend-Lease matters with the International Supplies Department of the National Military Council but that after January 1, 1945 all such negotiations would be carried on with the WPB.
Mr. Fisher discussed the work in China of OWI, stating that its purely informational services were carried on under general supervision of the Embassy, while its psychological warfare activities were under the Theater Commander. He said that one of the projects now under consideration by OWI was to assist the Chinese in carrying on publicity for the WPB.
General Hurley stated that he had called the meeting for the purpose of coordinating all American activities in this Theater; that the Embassy’s purpose was not to interfere with any organization whose mission had been defined by constituted authority; and that with these objectives in mind it was planned to hold similar meetings at the Embassy every Wednesday morning at 10 a.m. Unanimous and enthusiastic approval was expressed by those present. General Hurley then said in part, “We are assigned as representatives of the United States Government to the existing Government of China. We do not intend to interfere in the internal affairs of this country but we are attempting to get China to participate in this war to the fullest possible extent.”
At the close of the meeting at 11:15 a.m., Colonel DePass, the Military Attaché, and Captain Jarrell, the Naval Attaché, offered to assist the Nelson group by supplying photographic services, interpreters and transportation facilities. Mr. Coonley expressed warm appreciation and said he would be sure to avail himself of their offers.
- Copy transmitted to the Department by the Chargé in China in his despatch No. 3215, December 9; received December 28.↩