Marshall Mission Files, Lot 54–D270: Telegram
Colonel Marshall S. Carter to General Marshall
92816. My 9265512 refers. The Secretary of War, the Acting Secretary of State and the Assistant Director of the Budget have personally considered every possible means of extending the Chinese Air Force training program beyond 30 June, by utilizing US funds, extension of credit, and transfer of obligations. There is no legal manner in which the program can be continued unless the Chinese make available the required cash of $8,076,866, and a substantial part of it prior to 30 June. They have even considered utilizing emergency funds which have not yet been appropriated; but since these funds cannot be reimbursed from other sources, drawing on them in the face of available Chinese dollar assets is inacceptable. The War Department directive to stop all training on 30 June has already been prepared, and in the absence of cash will have to be issued. This is in no way a squeeze play on the part of the United States. It [is] purely and simply a fact that any other action is illegal.
After discussing this matter with Dr. Wang, and Chinese Embassy, I recommend that you suggest to T. V. Soong that any urgent instructions for them on this matter be duplicated through our channels because of extreme shortage of time.
- Supra. ↩