893.34/262
Memorandum of Conversation, by the Director of the Office of Far Eastern Affairs (Grew)
With reference to previous talks with Captain Daniel, USN, on behalf of Admiral King, I told the Captain today, after talking the matter over with Mr. Stettinius, that we could now give the Navy the “green light” for the proposed transfer to the Chinese Government of four destroyers and four mine layers so long as the transaction was done under Lend-Lease provisions; in other words, the ships would be lent and not given outright. Captain Daniel replied that this was the only legal basis on which, in time of war, the transaction could be effected. He said that he did not know whether this would be satisfactory to the Chinese Government but it was the only way in which the thing could be done.