893.51/9–2645: Telegram
The Chargé in China (Robertson) to the Secretary of State
[Received 12:00 p.m.]
1662. The Embassy would appreciate being advised earliest possible outcome of Soong’s negotiations in Washington particularly with respect to (1) Treasury and/or Export-Import loans or credits, (2) settlement for Army expenditures since January 1, and (3) the purchase of certain supplies ordered under Lend-Lease. This information is necessary for the proper consideration of many problems about which the Embassy is now being consulted.47 Soong arrived Chungking September [omission] but has not intimated to American authorities the outcome of his negotiations.
Of immediate urgency is the disposal of Lend-Lease and United States military surpluses and the settlement of United States Army [expenditures?] be considered as one problem. Brigadier General [Page 1159] Hesketh48 and Commander Boaz,49 representatives of OANLC (Office Army–Navy Liquidation Commission) for China, India and Burma, are in Chungking for a few days for conferences with Embassy, G–550 and FEA with respect to the disposal of surpluses. They have asked for certain information which neither the Embassy, the Army nor FEA is able to supply. We should appreciate a prompt reply to the following queries:
- (a)
- How much dollar exchange resources will China have available for purchase of surpluses (obviously this depends on various factors presumably dealt with by Soong in recent discussions, such as settlement for United States Army expenditures since January 1, and the amount and character of credit facilities granted)?
- (b)
- Was the question of an early establishment of a fixed rate of exchange discussed with Soong?
- (c)
- To what extent if at all and under what circumstances will sales of surpluses be allowed in return for Chinese national currency? The disadvantage of accepting Chinese currency is obvious but question was raised by General Hesketh.
- (d)
- If sales of surpluses in return for Chinese currency are to be allowed, has it been agreed or is it contemplated that such sales will be allowed up to a limited quota prior to the conclusion of a general exchange agreement? Apparently this practice has been followed in the case of some European countries and OANLC (Office Army–Navy Liquidation Commission) representatives say that the answer with respect to China is important in that it may affect the speed with which surplus disposals of this theater can be initiated.
- (e)
- Reur 1513, September 22 [21], 6 p.m. Has decision been reached with regard to manner of disposal of FEA surpluses? Please keep us currently informed as question is intimately related to overall problem.