811.22793/5–3146
The Acting Secretary of War (Royall) to the Secretary of State
Dear Mr. Secretary: Reference is made to your letter LP dated 12 February 1946 in which you authorized the War Department to continue the Chinese Air Forces Training Program for approximately 2300 students already in the United States and 1280 students still in China for period extending not later than 1 May 1947. The Chinese Government will bear the expense of this continued program under terms of an agreement to be concluded with that government.
In your letter of the 12th, you requested the War Department to provide an estimate of the probable cost of this program in order to enable the State Department to conclude an agreement with the Chinese Government at the earliest possible date. The overall costs for this program were furnished your Department and a detailed cost account was furnished Mr. Charles R. Bennett, Chief of the China Division, Office of the Foreign Liquidation Commissioner.
On the 17th of April 1946, a letter was submitted by Mr. Bennett to Major General Mow Pang-Tsu, Director, Commission on Aeronautical Affairs, requesting that Commission to file with the State Department a cash reimbursement requisition, which involves payment of the estimated cost, namely, $23,811,000 at the time of submission of the requisition. In a reply, dated 23 April 1946, Major General Mow stated that the details of the estimates would be submitted to their Headquarters in China and that the Commission would contact Mr. Bennett as soon as pertinent instructions are received from China.
[Page 772]It is urged that the negotiations be completed as soon as possible as it will require some time to provide the necessary means of reimbursing War Department appropriations. The end of the present Fiscal Year will soon be upon us, and the War Department must be reimbursed for funds expended subsequent to 30 November 1945 through 30 June 1946 before 30 June 1946. In order that this program can be continued past 30 June 1946, advances must be made to the War Department on or before 1 July 1946.
The War Department will be glad to assist in any way in the negotiations with the Chinese Government.
Sincerely yours,