Marshall Mission Files, Lot 54–D270: Telegram

Colonel Marshall S. Carter to General Marshall

98250. The Maritime Commission is now ready to act on China’s application for the purchase of 159 war-built commercial vessels of various types under the Merchant Ships Sales Act of 1946. This includes Liberties, Victories, N3’s and CIMAVl’s. The deal involves an extension of credit by U. S. to China of approximately $76,000,000 ever a period of not to exceed 20 years.

The National Advisory Council has advised the Maritime Commission as follows: [Page 801]

“The Council has no objection to the extension of the credit to the Government of China providing that General Marshall’s approval has first been obtained.”

This program of acquisition of vessels will extend over a period of almost 2 years and is designed to restore to pre-war levels Chinese coastal shipping. This is identical program we have been working on here since April.

In order to comply with National Advisory Council’s recommendation, the Maritime Commission has asked me to obtain your formal views on the extension of the indicated [program] for this purpose.