Marshall Mission Files, Lot 54–D270: Telegram
Colonel Marshall S. Carter to General Marshall, at Nanking
89053. Reference your 712, and my 88592, I have just sat in on teleconference19 between McCabe and Howard in which Mr. McCabe concurred in your price recommendation of maximum of 25% of original cost not landed cost, this on the basis that China would take all moveable surpluses exclusive of scrap vessels and airplanes as covered in Howard’s letter of May 1420 to you, and also proposed that scrap not economically returnable to the United States be included at no charge. McCabe is not particularly concerned about difficulties with additional extensions of credit but did inject the thought that the United States might desire certain intangible concessions from China in consideration for additional credit and low price with the statement that Howard should be guided by your views in the matter. The conference closed with mutual expressions of admiration and the request that a copy of the teleconference be forwarded by Manila to you.