Marshall Mission Files, Lot 54–D270: Telegram
Major John Edward Bell to Brigadier General Bernhard A. Johnson, at Shanghai
26128. Admiral Mar deal proceeding satisfactorily. Conference held with Admiral Kennedy, Director of Ship Maintenance, Bureau of Ships, Colonel Shields, Monetary Division, FLC, Mr. Endicott,93 Mr. Lane,94 Mr. Cox, lawyer for Bureau of Ships, Commander Cleveland, FLC, Mr. Schmidt, General Counsel FLC. All approve the deal generally. The Navy has promised to give us a draft tomorrow including their recommended changes in original draft. These changes will probably be minor. They want assurances that the material transferred to the Chinese Government will actually be used in these dockyards and other minor changes. Colonel Shields has no objection from a monetary or credit angle but states there may be some complications from fiscal or accounting but this can be ironed out here. Mr. Schmidt approves the contract generally with a few minor changes. Mr. Endicott agrees entirely but raises the question of cost of transportation. He contends that the $15 figure may not necessarily be correct and that we should add a clause allowing the Government to recover the actual cost of transportation. However, others here in FLC do not concur and feel that additional auditing cost etc. would not justify this change. But this is a minor point and will cause no trouble here. Will radio to you the revised draft95 as soon as it is approved by FLC, Navy and Treasury which should be the latter part of this week. Am endeavoring now to have the Chief of Naval Operations here send message to ComSerPac96 instructing them to start shipping the property to Shanghai. Will keep you informed.
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