Foreign Relations of the United States: Diplomatic Papers, 1945, The Far East, China, Volume VII

103.9169[/9–2145]: Telegram

The Acting Secretary of State to the Ambassador in China (Hurley)

Washington, September 21, 1945—6 p.m.

1513. Negotiations further delayed by discussions with ANLC.⁴³ (From FEA Harding) Present status as follows:

1. Crowley has written Soong⁴⁴ confirming previous offer for sale to China all FEA lend-lease supplies in this country, per our 1415 Sept. 7,⁴⁵ but that inventories in China, India and afloat are still under discussion with ANLC.

2. Crowley has written McCabe that “It is my opinion that the interests of our Government would best be served by such an agreement (per our 1415 Sept. 7) with the Chinese. In view of my discussions with you, however, in which you have stated that these supplies should not be disposed of until a time when disposition can be made of Army-Navy surplus supplies as well, I am of the opinion that it would be more desirable to have these negotiations carried out by you as Army-Navy Liquidation Commissioner.

I therefore declare surplus and request you to arrange for the disposal of all FEA lend-lease supplies in inventory in China and in India (earmarked for China) and enroute on Chinese lend-lease account to Indian ports on V–J Day. I am prepared to make available to you all relevant data which this Administration possesses with regard to these supplies.”

Note. This not necessarily final answer until McCabe acknowledges and accepts. We will advise further soonest possible.

Your 1587 [1578] Sept. 13,⁴⁶ we strongly concur regarding desirability suggested movement trucks but in view above can only authorize such movement with concurrence ANLC, which we are now asking. If shipped on U. S. A. vessels within 60 days from V–J Day, ocean freight charges can be covered by straight lend-lease.

It is obvious whatever final outcome of negotiations, full inventory all supplies under FEA control in both India and China will be required. Accordingly, in addition preliminary action suggested our 1415 Sept. 7, you are instructed to take immediate definite action with respect thereto.

Sent to Chungking as 1513, repeated to Kunming as 215, and Calcutta as 766.

Acheson

43. Office of the Army-Navy Liquidation Commissioner, headed by Thomas B. McCabe.
44. See letter of September 18, supra.
45. Not printed.
46. Not printed; it suggested the possibility of using Army shipping space to transship unassembled trucks from Calcutta to Shanghai (103.9169[9–1345]).