Marshall Mission Files, Lot 54–D270: Telegram

Mr. Thomas B. McCabe to Mr. John K. Howard, at Manila

91468. I am unofficially advising you that you are authorized to increase the Chinese credit from outstanding amount of $250,000,000 [Page 1040] to a total of $425,000,00021 which you indicated. The Chinese National Debt22 of approximately $80,000,000 which I understand remains at this time unused is temporarily withdrawn for use in connection with a proposed bulk sale to China. I suggest you go ahead with your negotiations until such time as I can restore either all or some part of the remaining Chinese National Debt for your purpose. Keep me advised.

  1. Formal approval to grant the Chinese Government a credit up to $425,000,000 for the purchase of all uncommitted surplus in the Pacific was given by Assistant Secretary of State William L. Clayton in his memorandum of June 18 to Mr. McCabe (893.24FLC/6–1846).
  2. The debt due China for advances of Chinese national currency to American military forces in China.