893.24/1–1746: Telegram

The Acting Secretary of State to the Embassy in China

105. For General Marshall from Colonel Davis:33a Detailed radio being despatched today34 regarding surplus property referred to Embassy telegram 115, dated 16 January.35 Length of this radio resulted from fact that it became vehicle for establishing coordinated governmental views. One difficulty in determination of timing and scope of negotiations with Chinese on points covered therein raised here is fact that both Yuan advances by Chinese and extension of lend-lease assistance by U. S. continue. My personal view is that this fact need not prevent the initiation of negotiations regarding the principles to govern the over-all settlement at such time as you deem appropriate and that determination of such principles cannot properly be disassociated from your over-all mission.

[Page 922]

Cable regarding present status UNRRA36 program was despatched as Deptel 98, dated 16 January.36a Dollar value present tentative allocation of UNRRA funds for China program to 1 March 1947 is $562,500,000 to which has been added estimated 20% to cover shipping which results in total of approximately $675,000,000. Of the $562.5 figure approximately $37,500,000 represents the 1945 procurement program, leaving $525,000,000 for 1946 and first quarter of 1947. Within this last figure only firm program decided upon to date is procurement program for first 6 months of 1946 totaling $407,000,000,which is broken down as follows:

Category Amount Percentage
Food $111,600,000 27½%
Clothing and textiles 92,100,000 22½%
Medical 24,600,000 6%
Agricultural (including fishing) 42,000,000 10%
Industrial (covering transportation and telecommunciations 136,700,000 33½%
$407,000,000 100%

No commodity breakdown of balance of program has yet been made. Your view as to advisability of allocating further UNRRA funds to China even though it may result in procurement of equipment and supplies in excess of China’s ability to absorb and distribute with resulting stockpiling and as to the character of supplies and the timing of commitment for their provision all in the light of the present political situation and status of your mission will largely determine position of State Department and US member UNRRA Council.37

With respect both to UNRRA question and that of settlement of lend-lease, surplus property, Yuan advances and similar questions, it is difficult here to know if information going forward meets your needs either as to character or extent. Your advice will be appreciated. [Davis.]

  1. James C. Davis, General Marshall’s representative in Washington.
  2. Telegram No. 101, to the Embassy in China, p. 912.
  3. Not printed.
  4. United Nations Relief and Rehabilitation Administration.
  5. Not printed.
  6. William L. Clayton, Assistant Secretary of State for Economic Affairs.