Marshall Mission Files, Lot 54–D270: Telegram

The Secretary of the Treasury ( Snyder ) to the Treasury Representative in China ( Adler )45

99201. In general, the Treasury has no objection to consummation of agreement outlined in your cable number 3130 of 30 August. The agreement is clearly within the understandings agreed upon and the terms of reference of the mission.

There is some concern over clause on quantity, which seems to be phrased in terms which would permit reopening of whole negotiations including valuation of Yuan advances. However, as long as future consultations would not involve quality of surplus and, in any case, as a practical matter would only have impact on United States 55 million dollar local currency payment by Chinese, there would be no objection on our part.
In view of history, we believe it essential that total Yuan obligations of the United States Army, including WASC,46 should be explicitly covered or else the course of the negotiations should be such as to permit reasonable assumption by the United States negotiators that they are covered.
General Connolly, Lane47 and representatives of General Richards48 were consulted and concur in the above.
  1. Addressed also to Mr. McCabe for action.
  2. War Area Service Corps.
  3. Chester T. Lane, Deputy Foreign Liquidation Commissioner.
  4. Maj. Gen. George J. Richards, Director, Budget Division, War Department Special Staff.