Marshall Mission Files, Lot 54–D270: Telegram
General Marshall to Colonel Marshall S. Carter
969. I received following letter from General Yu Ta Wei6 today.
“Dear General Marshall, I am instructed by Dr. T. V. Soong to approach you for a solution of the following issues.
Complying with the Generalissimo’s request, arrangements have been made by President Truman to continue CAF training program after 30 November 1945 in USA on the understanding that the Chinese Government will expect to bear the expense of this program under agreement to be concluded. Message recently received from Major General Mow Pang-tsu of CAF in Washington states that this program will be suspended on 30 June 1946 unless payment be made by the Chinese Government before the same date.
Since the Chinese Government attaches great importance to this training program, Dr. Soong suggests that you recommend to the US State Department not to stop it pending negotiation for settlement.
Dr. Soong also suggests that all expenses of this program from 30 November 1945 to 30 June 1946 be charged against US Lend-Lease Aid to China and all expenses subsequent to 1 July 1946, now estimated at US $7,575,727, be paid by the Chinese Government out of the US dollars account accrued to the Chinese Government through the CN6a dollars advancement to US Army.”
My answer to Dr. Soong with carbon copy to Yu Ta-wei as of today was as follows:
“Dear Dr. Soong: General Yu Ta-wei handed me a letter dated 24 June 1946 concerning extension of CAF training program in the United States.
At your suggestion I have asked the State Department temporarily not to terminate the training program on 30 June 1946, pending final [Page 775] settlement of terms. At the same time I have asked for a clarification of the terms of financial settlement, both for the 1 December 1945 to 30 June 1946 period and for the 1st December 1945 to 30 June 1946 period and for the post 30 June 1946 period.”
Please take following action:
- 1.
- Request War and State for temporary continuation of CAF program beyond June 30 pending conclusion of agreement as to payment therefor.
- 2.
- Inquire whether agreement referred to in para 2 of Yu’s letter contemplated that costs for December 1945 to June 30, 1946 be under reimbursable or non-reimbursable Lend-Lease.
- 3.
- Inquire whether following terms which I recommend for post
June 30 costs of training program are acceptable to War and
State.
“China to make a firm commitment to pay the cost of post 30 June 1946 CAF training program from its US dollar assets, if the US dollar settlement of the United States debt to China for Yuan advances to the US Forces in China is already allocated or to be allocated for the purchase of surplus property and for other Chinese Government obligations to the United States.”