893.24/6–746
The Acting Secretary of State to the Secretary of War (Patterson)
My Dear Mr. Secretary: Reference is made to War Department memorandum of June 7, 1946, (OPD 400.3295) regarding the continuation of certain military programs of aid to China, namely, the Reoccupation Program and the Training and Equipment Program, and War Department memorandum of June 11, 1946, (OPD 350.2) regarding the training of Chinese medical students and Chinese officers.
In accordance with the authority vested in the Secretary of State by the President’s memorandum to the Secretaries of War and of [Page 752] the Navy of January 19, 1946,42 the War Department is hereby authorized to provide the Chinese Government with services and government-owned equipment under the Lend-Lease Act in support of the programs referred to above. The authority to continue the Reoccupation and Training and Equipment Programs extends up to but not beyond October 31, 1946, and the expenditures involved in the completion of these two programs after June 30, 1946, may not exceed $25,000,000. The authority to proceed with the training of medical and ground officers extends up to but not beyond December 31, 1947, and the expenditures of the War Department in the completion of these programs may not exceed $1,250,000.
The War Department is further authorized to provide services and to transfer government-owned equipment under the Lend-Lease Act in support of Chinese troops engaged in the occupation of Japan for a maximum period of three years ending June 30, 1949. The amount and the duration of the assistance to be provided shall be as determined by the Senior United States Commander in Japan to be necessary to supplement the equipment and services available to the Chinese forces from the resources of the Republic of China.
There is attached hereto a photostatic copy of the 3 (c) Agreement signed on June 28, 1946, by representatives of the Governments of the United States and China.43 Article II of the Agreement comprehends all the programs authorized above and extends the date from May 1, 1947, to December 31, 1947, of the air training program previously authorized by the Secretary of State in his letter to you of February 12, 1946.44 You will note that Article II (c) of the Agreement refers to training programs the cost of which to the the Government of the United States after June 30, 1946, shall not exceed $15,000,000. It is intended that $10,000,000 of the $15,000,000 shall cover the costs of the War Department air, ground and medical training programs and $5,000,000 shall cover the costs of the Navy Department’s training program. You will note further that, in Article III of the Agreement, the Government of the United States shall be reimbursed by the Government of China upon presentation of bills. The bills may be presented, at the discretion of the War Department, either in advance of or subsequent to the provision of assistance under the programs authorized above.
I understand that a check for $4,000,000 toward the costs of the air training program after June 30, 1946, was turned over to the War [Page 753] Department by the Chinese Government on June 29, 1946, and that funds in the amount of $1,250,000 were deposited by the Chinese Government with the United States Treasury for payment to the State Department against the costs of the medical and officers training program.
Sincerely yours,