The War Department to the Department of State 45

Subject: Reverse Lend-Lease, Republic of China

The Republic of China has supplied rations and to a limited extent billets for the U. S. Forces within China since their entry into that country in 1942. No statement of charges for the above services has been presented for payment by the Chinese Government although efforts have been made within the theater to obtain certified statements of charges pertaining to these services. It is noted in the most recent financial settlement with China in September 194446 that these services were listed as mutual aid and were so accepted by the Chinese Government. Procurement of other supplies and services by the U. S. Army from indigenous sources in the China Theater is continuing on an increasing scale. Local procurement will continue to increase as approved operations in the China Theater are carried out.
The Commanding General, China Theater, in view of increasing procurement and services, has recommended to the War Department that a Reverse Lend Lease Agreement be negotiated with China. The War Department is unable to give proper advice on this matter inasmuch as it is understood that the formation of policies regarding Lend Lease and Reverse Lend Lease is a function of the State Department.
The War Department desires an informal expression of State Department opinion on this matter as information upon which to base a reply to Commanding General of the China Theater.
L. J. Lincoln

Colonel, GSC
Chief, Asiatic Section
Theater Group, OPD, WDGS
  1. For the attention of the Chief of the Division of Chinese Affairs (Vincent).
  2. See letter of December 23, 1944, from the Secretary of the Treasury to the Secretary of State, Foreign Relations, 1944, vol. vi, p. 948.