893.24/1–1746
Memorandum by the Acting Secretary of State to President Truman
There is returned herewith joint letter to you from the Secretaries of War and Navy, dated January 14, 1946, together with draft memorandum [Page 726] to the Secretaries of War and Navy which was attached thereto and which recommended extension of the authority of the War and Navy Departments to furnish lend-lease aid to China to include transfers of arms and ammunition and transfers during the period between March 2, 1946, and June 30, 1946.
I have revised the proposed directive to the Secretaries of War and Navy, in accordance with our conversation, and attach a suggested draft of directive which I recommend that you sign and despatch.
My suggested revision grants the additional authority requested by the Secretaries of War and Navy but contains two major changes in their suggested draft. In my revision it is provided that the programs, in implementation of which lend-lease transfers may be made, shall be those falling within established policy as interpreted by the Department of State rather than those endorsed by General Marshall as was suggested by the Secretaries of War and Navy. I have also added to the War and Navy draft a request that the War and Navy Departments promptly furnish to the Department of State information on which to base a policy decision with respect to the terms which shall govern additional transfers under the Lend-Lease Act to China.
While General Marshall’s endorsement of lend-lease programs should be secured, I believe it inappropriate to measure lend-lease transfers to China solely on this basis. Such a provision not only might be interpreted to cast upon him an excessive responsibility to review in some detail programs of lend-lease assistance but it also charges him with what is properly a function of the Government to be exercised in the light of his recommendations.
The administrative necessity of continuing military lend-lease transfers to China after March 2, 1946, is recognized. It is apparent, however, that these transfers may be very substantial. Information now at hand indicates that transfers since V–J Day7 are already in the neighborhood of $500 million. In the light of your public announcement with respect to the termination of lend-lease, it seems essential that the War and Navy Departments should promptly provide the necessary information to evaluate the Chinese lend-lease picture and to permit the Department of State, with your approval and consistent with the progress of General Marshall’s mission, to institute negotiations to determine the terms under which such assistance is to be provided.
My suggested revision also recognizes the possibility that there may be certain assistance required after June 30, 1946. Such assistance can be provided only until June 30, 1949 and then only under [Page 727] arrangements completed prior to June 30, 1946 (Section 3 (c) of the Lend-Lease Act). In the revised draft any such extension of assistance requires the approval of the Secretary of State.
- September 2, 1945, official date Japanese surrender.↩
- Approved by President Truman on January 19 without change. Transmitted with exception of first paragraph by the Acting Secretary of State to the Embassy in China in telegram No. 136, January 22, 8 p.m.; transmitted in full by the War Department to the Commanding General, U. S. Forces, China Theater, in telegram No. 94506, January 24.↩