Marshall Mission Files, Lot 54–D270: Telegram

General Marshall to Colonel Marshall S. Carter

1641. Plan A is out, as undesirable, 8158970 refers. If equipment is disposed of as surplus under plan B, Chinese would claim 22 percent of cost rate under surplus agreement rather than the higher figure under Lend-Lease. But, what is more important, surplus disposals are not to include military items and we have so stated.

Please check following proposal with appropriate authorities: Peiping Headquarters Group (where equipment is now stored) arbitrarily to retain equipment under U. S. control thus removing it from Lend-Lease. U. S. to dispose of property, when conditions are right for integration, to Chinese by direct sale, after approval by SWNCC.

Based on reply I will inform Government of this manner of handling the equipment and issue appropriate instructions to Peiping Headquarters Group.

  1. Telegram of September 26, p. 760.