811.22793/6–2546

Colonel Marshall S. Carter to the Secretary of State

Dear Mr. Secretary: Approximately 20 November 1945, Generalissimo Chiang Kai-shek requested the President of the United States to continue the Chinese air force training program in the United States until post-war training arrangements and methods of settlement were completed. The Generalissimo stated that his government expected to bear the expenses of this program under agreement to be concluded. The President replied that arrangements had already been made to continue the training of the Chinese air force personnel substantially as outlined in the Generalissimo’s message.

Since the exchange of messages noted above, the War Department and the Department of State have conducted negotiations with the Chinese Government looking toward a means of settlement of the cost of the program, which is estimated to be on the order of $24,000,000. The United States has asked the Government of China to pay this amount in advance prior to 1 July 1946.

Dr. T. V. Soong, President of the Executive Yuan, has approached General Marshall with an alternative proposal for payment. This proposal is now being studied by the War, State and Treasury Departments, but it is doubtful that a solution can be reached prior to 30 June.

General Marshall has requested (969, CM–IN–5135, 24 June) that the Chinese air force program be continued beyond June 30 pending [Page 776] conclusion of an agreement as to method of payment therefor. A cessation of such training at this time would seriously affect the development of the Chinese air force and the negotiations for amalgamation of the armies that General Marshall is currently engaged in.

It is requested that the Department of State take the necessary action to continue the Chinese air force training program beyond 30 June in order that the program not be disrupted during the negotiation of terms of settlement.

A similar letter has been dispatched to the Secretary of War.

Sincerely,

Marshall S. Carter