Marshall Mission Files, Lot 54–D270: Telegram

Mr. Thomas B. McCabe to Brigadier General Bernhard A. Johnson, at Shanghai

82715. Re your dispatch 26468.10 General Marshall approves in principle of extending to China $250,000,000 credit for purchase of surplus property. He is concerned however over price and feels every consideration should be given to sell the surplus against this credit at most reasonable figures. Monetary Division, OFLC, Washington, must secure approval to line of credit with State and Treasury Officials before agreement can be consummated. Pending the obtaining of governmental approval to the extension of an over all line of credit there is no objection to your continuing tentative discussions with the Chinese working toward the disposal of surpluses on 30 year terms at 2⅜ per cent up to a total amount of $250,000,000. Before any contract or agreement is signed the general terms and price for surplus will be submitted to General Marshall for approval.

  1. Not printed; see footnote 6, p. 1033.