Marshall Mission Files, Lot 54–D270: Telegram
General Marshall to Major General Ray T. Maddocks
83749. This message is reply to 27655 dated 5 April. Please pass following to Doctor T. V. Soong:
“Since receipt of your message, I have made informal investigation in the State and Treasury Departments and with Export–Import Bank officials. So far as concerns the suggestions made under your Article 1, respecting utilization of the loan for domestic expenditures in China or the purchase of consumer’s goods, the situation is as I indicated to you in my previous message on the subject; namely, the view is rather firmly held here the ExImBank funds should not be utilized for the payment of Chinese domestic costs, such as local labor and supplies, and that under the statute creating it, the Export–Import Bank should not extend credit for the purchasing of consumer’s goods except in unusual circumstances such as were present in the cotton loan to China.
“So far as concerns the suggestion contained in Articles 2 and 3 of your message, our governmental agencies hold the view that the draft changes suggested involve a definite change of meaning rather than of form only. It is apparent to me that discussion of these changes will necessitate detailed negotiation.
[Page 975]“As it would be neither practical nor appropriate for me personally to conduct detailed negotiations; and as it is apparent that the changes suggested will require such negotiations, I decided not to make a formal approach to the Board of Directors of the Export–Import Bank nor to other interested agencies and will not do so. I am giving you the benefit of my informal investigation for such use as you may care to make of it in instructing your government’s representatives in Washington in further negotiations with the Export–Import Bank.”