893.24/2–846: Telegram

The Secretary of State to the Embassy in China

284. For General Marshall:

1.
Dept suggests you bring to attention of Chinese Govt the desirability of early negotiation of surplus property disposals and related settlement of yuan advances and lend-lease. (Reurtel 247, Feb 8.) Please indicate belief that negotiation should be in Washington at earliest practicable date. Dept will approach Chinese Ambassador only after hearing from you. Agree with your suggestion re meetings of Central Executive Committees.
2.
With respect to your 2, you will be advised of further developments.
3.
No objection (your 3) to informing Chinese at appropriate time of substance of 2–a, b, c and d of Deptel 217, Feb 4 in order to emphasize [Page 939]longer run importance of International Bank as major source of development loans. It should not be implied, however, that Eximbank will discontinue operations in this area after International Bank is underway.

Byrnes