Marshall Mission Files, Lot 54–D270: Telegram
Lieutenant General Alvan C. Gillem, Jr., to General Marshall
27655. Following message is passed from Doctor T. V. Soong for General Marshall.
Generalissimo transmitted me in Shanghai your message of 31 March6 in re Export–Import Bank credit and directed me to convey you the following reply:
[“]I have been following with deep gratitude your vigorous efforts to secure aid for China, and I am particularly happy to receive your message reporting your success with the Import–Export Bank Loan. I am also grateful for your efforts in resisting the inclusion of the Maritime Commission’s sales to China and the charges for surplus property over and above the offsets against US currency obligations in China, which evidences your thoughtfulness in getting the utmost for China.
As to the two drafts for the Import–Export Bank Loan may I make these observations:
- I.
- As you doubtless know, our treasury is hard put to meet current expenditures. Would it be possible for the Export–Import Bank to make the loan so elastic that it would either (1) provide cash for domestic expenditures in China to cover each specific project, or (2) provide that loan may cover the purchase of goods or raw materials that may be sold in China and proceeds be used for these specific projects?
- II.
- May I suggest that in the draft of the Export–Import Bank letter to China the wording be changed to read ‘General Marshall etc. etc. has reported that China has made substantial advances towards improving the political and economic conditions essential for the rehabilitation of its economy, and has recommended etc. etc.’.
- III.
- In the proposed draft of letter from the Chinese Government may I suggest that paragraph 4 be omitted, and in its place paragraph 2, second sentence the last part to read ‘and whether the Chinese Government will be able to arrange adequate personnel to supervise their installation and operation; and whether at the time each individual project is re-examined the Bank in its opinion considers the conditions in China warrant making use of the credit.’
The suggested change in the condition governing the ability to arrange for adequate personnel is principally a question of draughtsmanship that you will readily appreciate. As to the final clause it will I hope meet the point that the Export–Import Bank should have the final say whenever any project is concerned but it is in a form the Chinese Government would prefer.
I realize most fully the extraordinary difficulties you have to overcome to secure favorable collaboration, and I also readily appreciate the needs of the directors of the Import–Export Bank. But I hope you will give my suggestions your careful consideration, wiring back if you have any comments to make before presentation to the Import–Export Bank. Again with warmest thanks, Chiang Kai Shek.[”]
Will you please send me through General Maddocks7 Shanghai your reply to Generalissimo’s message.