Marshall Mission Files, Lot 54–D270: Telegram

Brigadier General Bernhard A. Johnson 2 to Mr. Thomas B. McCabe 3

26467. Have had a 2-day conference with Doctor Soong4 in Chungking regarding purchase of all surpluses on Okinawa, East China, North China, and Japan with the exception of what United States Agencies and UNRRA5 take. We are setting up now a trip to Okinawa within the next week for about 15 or 20 representatives of Chinese Ministries, with Doctor Soong, for a 2-day inspection of the surpluses on that island. With my present background of this deal I believe that the Chinese Government will ask for $250,000,000 revolving credit for the purchase of surplus property on the basis of 50 cents on the dollar of United States cost, or 50 cents on the dollar of United States cost plus transportation less condition depreciation. I have wired6 Endicott7 and Gould8 in Washington to get in touch with Gen. Marshall,9 to get him to help in paving the way in Washington.

  1. Field Commissioner, China and Eastern Area, Office of the Foreign Liquidation Commissioner (OFLC). The OFLC was established in the Department of State in October 1945 with responsibility for the disposition of United States surplus property in foreign areas, lend-lease matters and liberated area requirements.
  2. Foreign Liquidation Commissioner and Special Assistant to the Secretary of State.
  3. T. V. Soong, President of the Chinese Executive Yuan.
  4. United Nations Relief and Rehabilitation Administration.
  5. Telegram No. 26468, March 23, not printed; it was similar in content to this telegram.
  6. H. Wendell Endicott, Deputy Foreign Liquidation Commissioner.
  7. Commodore Erl C. B. Gould, OFLC.
  8. General of the Army George C. Marshall, Special Representative of President Truman in China.