Marshall Mission Files, Lot 54–D270: Telegram
Colonel Marshall S. Carter to General Marshall
92048. 9158868 and 91569 refers. The Maritime Commission proposes that, in order to carry out the conditions that the transfer of the vessels under lend-lease should be superseded at the earliest possible moment by sale under the Merchant Ship Sales Act, the following action be taken: [Page 798]
- a.
- The Government of China should arrange to place 5½ million dollars in escrow to cover the estimated purchase price of the 10 vessels, which money will later be available for down payments on other vessels applied for, provided the Commission extends credit terms to foreign governments generally, and subject to taking care of any liens on the 10 vessels intervening prior to the effective date of the credit mortgage.
- b.
- If the money indicated in a above is made available at once, negotiations can be completed here by the Chinese Supply Commission and the transfer of title be made on 23 June or shortly thereafter.
The Maritime Commission has not determined generally as to foreign governments the method of payment to be made, whether cash, or cash and credit. Until this policy has been established sale cannot be consummated, and title cannot be passed except by the escrow arrangement noted above.
It is believed that the Chinese Government should meet the terms of the Presidential Directive by making available the sum of 5½ million dollars as purely an interim arrangement to cover the period between transfer under lend-lease and the date on which actual sale of the vessels can be completed, in order to transfer title to the Chinese Government at the “earliest possible moment”. The substance of this cable has been given to Dr. S. C. Wang, Chinese Supply Commission, who is to report it to T. V. Soong.