Marshall Mission Files, 54–D270: Telegram

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

83352. Refer 82715 dated 30 March. Extension of dollar credit of $150,000,000 to the Chinese Govt for purchase of surplus property is now authorized. This amount may be increased an additional $100,000,000 at a later date when and if needed. The terms of the agreement covering this authorization will be negotiated in Washington and may require some time in completion. However, you are authorized to make commitments to Chinese Government up to $150,000,000 immediately and if necessary make delivery of emergency items.

It is understood that the use of this credit may be made only after offset of CN debt11 has been employed for purchases of surplus property.

State Dept desirous of obtaining approximately $10,000,000 worth of real estate and buildings in China in exchange for surplus property. Necessary arrangements being made here for inclusion of this subject in the credit agreement.

  1. The Chinese national currency debt was due China for advances of such currency to American military forces in that country.