The Chargé in China (Atcheson) to the Secretary of State
[Received 2:30 p.m.]
1891. Generalissimo November 21 approved draft governing Chinese War Production Board which will probably be promulgated in about 10 days simultaneously with revised national mobilization law. Nelson states present law recommended by him is more comprehensive than that under which our WPB operates and replaces unsatisfactory draft proposed by Chinese. (ReDeptel 1485, November 1442 and ReEmbs 1884, November 22, 11  a.m.)
Nelson states entire law will not be made public; that Generalissimo is very much in earnest in regard to matter; and that in accordance [Page 285] with his recommendations Generalissimo has agreed to have WPB coordinate and control all transport facilities and order certain Chinese experts now in United States to return to China for work in WPB. Following are main provisions:
Article 1. WPB shall exercise complete authority over war production work under broad national policies and plans of Executive Yuan and National Military Council.
Article 2. Purpose is to obtain maximum production for war and essential civilian purposes and to direct, supervise and coordinate war production organizations both public and private.
Article 3. Authority shall extend over following wartime functions of Government:
- Production of war materials and essential civilian supplies;
- Procurement of essential materials and supplies from foreign and domestic sources;
- Priorities on production;
- Allocations of materials, facilities and industrial manpower;
- Import and export of critical war materials and civilian supplies;
- Transportation priorities for war materials and essential civilian supplies, both within China and between China and foreign countries;
- Standardization and conservation of materials and products for war and essential civilian use including authority over specifications and technical development of materials and production;
- Stockpiling of war materials;
- Requisitioning of materials, facilities and products for essential war production purposes;
- Limitations on use of materials, machinery and equipment in construction of buildings, highways, public works, et cetera;
- Determination of need for additional funds for production and procurement of industrial materials and products and construction of industrial facilities through appropriate agencies of Government.
Article 6. In order to secure closest cooperation between China and America on war production there shall be created if feasible a joint Sino-American production committee.
Article 7. In order to obtain best available counsel on technical problems of war production, WPB shall create technical committee including foreign and Chinese technical experts.
Article 16. Any plans and measures concerning war production fixed by WPB shall be carried out by war production agencies.
Article 17. Any priority, procurement and construction plans and programs concerning war production fixed by WPB shall be carried out by war production organizations both public and private and Government control agencies.[Page 286]
Article 18. Any plans for transportation of goods concerning war production fixed by WPB shall be carried out by all transportation agencies.
Article 19. WPB shall have authority to determine need for additional funds for production and procurement of industrial materials and products and construction of industrial facilities necessary to meet war and essential civilian requirements.
Article 20. WPB shall have authority to obtain from industrial and commercial concerns, both public and private, and from war production and control organizations of Government, data, records, et cetera necessary to carry out its functions.
Article 21. If any private or public concern or Government organization holds an idle or excessive stock of critical materials or idle facilities needed for war production, and refuses to sell that stock or facilities to user designated by WPB at price determined by WPB to be fair, WPB shall have right to requisition idle or excessive stock or facilities and to proceed with transaction at determined price.
- Not printed.↩