The Ambassador in China (Hurley) to the Secretary of State
[Received 1:48 p.m.]
174. To Crowley13 for Willauer14 from Stanton15 and Joyner.16 1945/46 Lend-Lease requirements as presented by WPB17 include 17,000 tons cotton textiles for military uniforms and 23,000 tons to be sold for civilian use as counter-inflationary measure to support currency.
Doctor T. V. Soong has expressed to us his strong conviction that this measure is of paramount importance to check present alarming increase in inflationary spiral. Furthermore he considers this and other measures he contemplates should prove effective for that purpose until such time as ports may be open.
We have indicated our doubt that this civilian requirement is lend-leasable. Dr. Soong urges your favorable consideration but expresses willingness if necessary to make cash purchase. He strongly desires and we recommend high priority.
Dr. Soong recognizes failure of his Government this season in securing entire cotton crop and assures all remedial measures now possible are being taken since his assumption of office.[Page 1059]
For his information, please estimate how much of above textile requirements can be made available from American supply.
If textiles not fully available, can raw cotton be supplied as part substitution. China’s cotton mills 1945 have capacity 15,000 tons in excess of available cotton. However, import of raw cotton involves not only extra shipping and hump tonnage but also added transportation within China which is even more serious problem.
Please wire fully and urgently. [Stanton and Joyner.]