Nanking Embassy Files, Lot F79, 820 Surplus Property: Telegram

The Counselor of Embassy in China (Smyth) to the Consul General at Shanghai (Josselyn)

53. From Adler to General Johnson. Calcutta stockpile. General Marshall has decided to make a final firm offer to Soong of 75 percent of cost, plus transportation, with 3–c terms of payment (Reurtel 47) provided that any excess of settlement of United States indebtedness to China for Army expenditures in China over China’s indebtedness for Calcutta stockpile be applied to the? immediate offsetting of China’s debt on this stockpile. In the event that Soong returns to Shanghai before proceeding to Chungking, it would be advisable for you to inform him of this final firm offer in order to avoid delay. Should Soong not accept this offer, General Marshall instructs you to dispose of the trucks in the Philippines.

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2. General Marshall has agreed to FLC proposal to declare stockpiles in Sukkur and Chabua surplus to FLC for normal surplus disposition as soon as formal rejection is received from China. [Adler.]