Marshall Mission Files, Lot 54–D270: Telegram
Brigadier General Bernhard A. Johnson to Mr. Thomas B. McCabe
23431. Doctor Soong during these last 2 days conference has not only accepted the offset principle, but is as heartily in favor of it now as he was against it before.
In the meeting with General Marshall yesterday General Marshall asked that China FLC as far as we could, within our law, and up to a total equalled to the estimated CN debt, price our surpluses on as reasonable a basis as possible.
The principle of recovering high percentage on surpluses that are in worldwide demand and lowering our price on items on which there is little demand meets his approval. In this first deal now with items that we have in hand in addition to Calcutta stockpile, the deal amounts to about 40 million dollars. But we have orders and went over plans with the Chinese Government that it seems, in my opinion, if we can deliver we will in a short time sell surplus property to an amount equal to the estimated CN debt.