811.20200 (D)/1–2046: Telegram
The Acting Secretary of State to the Embassy in China
135. For General Marshall from Colonel Davis.
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Cotton Loan: Contract with Chinese providing extension of credit not yet signed. Still too early to estimate dates and quantities arrival in Shanghai. UNRRA here has matter under investigation and will inform Kizer42 directly from time to time as situation develops. Present UNRRA procurement program for first 6 months 1946 calls for 125,000 tons at approximately 20,000 tons per month, equivalent of [Page 924]500 to 550 thousand bales. It is estimated that maximum Chinese can purchase under loan is 300,000 bales (refer Deptel 78, January 1843 to Shanghai, repeated to Chungking). Have recommended to UNRRA here that Kizer be advised to treat indigenous supply, UNRRA imports, and Chinese loan imports together as one program in dealing with Chinese on distribution, end production and other matters. [Davis.]